- Silver takes a 28.16 U-turn, flashes a two-day winning streak.
- Sustained trading above the 21 day SMA limits entry for sellers.
- Bearish MACD, sluggish RSI could play their part around August 18th.
Having initially hit their highest level since Aug. 18, silver prices retreated to $ 27.85 in Monday’s Asian session. Even so, the white metal is posting gains of 1.30% while rising for the second day in a row.
The success of the SMA beyond 21 days listing since June 2020 also illustrates the strength of the buying momentum. On the contrary, MACD and RSI conditions suggest a pullback.
As a result, bulls can expect a sharp break from the mid-August peak around $ 28.50 for new entries. In doing so, the current monthly high near $ 29.85 and $ 30.00 will be on their radars.
Meanwhile, a break down of a 21-day SMA level of $ 27.00 may trigger further price declines targeting the previous week’s low around $ 26.00.
It should be noted that the 61.8% and 50% Fibonacci retracements of bullion declines from August 7 to 12, close to $ 27.40 and $ 26.60, respectively, act as additional filters on the downside.
Daily silver graph
Trend: expected decline