- Silver holds onto corrective pullback around monthly low.
- Descending Momentum line, sustained break of two-month-old support favor sellers.
- 100, 200-DMA add to the upside filters, nears eye 23.6% Fibonacci retracement level.
Silver (XAG/USD) pares intraday losses around $23.60 during early European morning on Wednesday.
The bright metal bounces off 50-DMA but the rebound fails to battle the bears amid a downward sloping Momentum line and a sustained break of an ascending support line from late September, now resistance around $24.00.
In addition to the stated support-turned-resistance, the 100-DMA also increases the importance of the $24.00 threshold for silver buyers.
In a case where the bullion rises past $24.00, 50% Fibonacci retracement (Fibo.) of May-September declines and 200-DMA, respectively around $25.10 and $25.30, will gain the market’s attention.
Meanwhile, a daily closing below the 50-DMA level of $23.53 becomes necessary for the commodity bears to challenge the 23.6% Fibo. support near $23.15 and multiple rest-points close to the $22.90-80.
During the quote’s weakness past $22.80, the $22.15 and the $22.00 levels may entertain the XAG/USD bears before directing them to the yearly bottom of $21.42.
Silver: Daily chart
Trend: Further weakness expected