- Silver struggles to organize a convincing rebound on Wednesday.
- The 20-day SMA continues to act as dynamic resistance near $ 27.80.
- The next significant support is at $ 27.20 before $ 27.00.
After breaking below the rising trend line from April at the beginning of the month, the pair XAG / USD it confirmed that line as resistance for the third time on Monday and extended its decline during the first half of the week. Although silver tried to rally earlier in the day, it struggled to break above the 20-day simple moving average (SMA), which is currently at $ 27.80. At time of writing, the XAG / USD was virtually unchanged on the day at $ 27.65.
Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart is flat around 50, which suggests that the pair is struggling to gain bullish momentum.
On the downside, initial support is at $ 27.20 (Fibonacci retracement 23.6% of the April-June uptrend) before $ 27 (psychological level / 50-day SMA). With a daily close below the latter, the door will open for further losses towards the 100-day SMA at $ 26.60.
The initial hurdle is lined up at $ 27.80 (20-day SMA) before $ 28 (psychological level) and $ 28.20 (rising trend line and the end of the two-month uptrend). In the short term, the pair may need to overcome this last resistance to attract buyers.
Daily chart
Technical levels
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