SILVER PRICE ANALYSIS: Silver goes back from seven weeks

• The XAG/USD falls from $ 33.70 to $ 32.95 despite the initial strength, lowering more than 2.0% intradic.
• A stronger American PMI than expected raises the feeling around the US dollar.
• The technicians suggest that the bulls still maintain control above the key support, but a short -term consolidation is likely.

La Plata (XAG/USD) reverses sharply on Thursday after briefly trying 33.70 $, its highest level in seven weeks, showing short -term fatigue signs after a strong breakout breakout on Wednesday, quoting around $ 32.95 during the American session. The setback was driven by a slight rebound in the US dollar and a technical rejection below the psychological level of 34.00 around April.

The recoil in the white metal was produced before the publication of the US Purchase Management Index (PMI), indicating that the withdrawal is mainly technical and driven by the early stabilization of the US dollar and the profits after a strong breakout on Wednesday.

However, from a technical perspective, the general trend still seems constructive, with silver maintaining a key structural support. The daily graphic highlights a clean breakout of a symmetrical triangle formation of several weeks, which had been compressing the price action continuously since the beginning of May. Cash prices exceeded the resistance of the descending trend line on Tuesday, with continuation purchases raising the metal towards the level of 33,70 $, a level not seen since the beginning of April.

The fall on Thursday seems to be a classic backward test after the breakout, with the price action cooling towards the 32.50–32.70 $ support zone. This region is technically significant, aligning with the 21 -day exponential (EMA) mobile average and the old resistance line of the broken triangle. Until now, the market has respected this area, suggesting that buyers can still be in control of the general trend despite the short -term setback.

Impulse indicators reflect a market in transition. The Relative Force Index (RSI) is close to the 52 neutral level, showing any immediate overstrust condition but pointing out a loss of bullish impulse. Meanwhile, the histogram of convergence/divergence of mobile socks (MACD) remains marginally positive, with the signal line still below the MACD line, indicating that the upward crossing earlier this week can still be at stake, although it shows early signs of flattening.

From a macro point of view, the American dollar index (DXY) is stabilized below the level of 100.00 after a three -day drop. The rebound is produced before the US PMI data of the US Global, which later surprised up. However, the setback of La Plata had already begun before the publication of the data, suggesting that technical flows, rather than those driven by macroeconomic factors, were promoting the price action.

Looking forward, sustained support above $ 32.50 will be key to preserve the structure of the breakout breakout. A daily closure below this level would undermine the employer and could open the door to a deeper correction around 32.00 and beyond. On the positive side, a return movement above $ 33.50 would encourage new purchases and paved the way for a new test of the maximum of April about 34.25 $.