- Silver prices fail to extend the previous day’s pullback beyond the key EMA.
- Normal RSI conditions, repeated bounced off 200-hour EMA suggest further weakness.
- Bulls will have to cross important Fibonacci retracement levels to regain control.
Silver eases to $26.93 during the Asian session on Thursday. In doing so, the white metal challenges the previous day’s recovery while taking a U-turn from 200-hour EMA.
Given the normal RSI conditions and the commodity’s repeated pullback from important Exponential Moving Average (EMA), the quote is likely to decline further towards $26.30 nearby support ahead of refreshing the weekly low of $25.84.
In a case where the bears remain dominant after $25.84, the previous month’s low near $23.40 will be on their radar.
Alternatively, a clear break of $27.03 immediate resistance will aim for 50% and 61.8% Fibonacci retracement of September 01-08 downside, respectively at $27.37 and $27.73, during the further upside.
Although RSI is likely to question the metal’s further run-up beyond 61.8% Fibonacci retracement, bulls may target $28.30 on a sustained break of $27.73.
Silver hourly chart
Trend: Pullback expected
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