- Silver prices remain on the background despite the formation of blinking bullish candlesticks the day before.
- The 21-day SMA challenges intraday bears amid downbeat MACD signals.
- The monthly resistance line becomes the main obstacle to the upside.
Silver traders fail to extend recovery moves from the end of the US session from $ 26.06 to $ 26.60 as the quote drops to $ 26.47 early Wednesday. In doing so, the white metal shrugs the Libellule candle formed the day before.
While the bearish MACD and trading supported below a three-week-old downtrend line could be spotted supporting sellers, a 21-day SMA near $ 26.45 is probing the bullion for further decline.
Besides the near-term SMA, yesterday’s low around $ 26.00 will also be key, as traders will wait for a full rejection of the bullish candlestick before stepping in to target the monthly low of $ 23.43.
Alternatively, $ 27.00 and the near resistance line, at $ 27.25 now, could challenge short-term buyers before deflecting them to the August 18 high near $ 28.50.
In a case where the bulls dominate beyond $ 28.50, the monthly peak near $ 29.85 and $ 30.00 will be in the spotlight.
Daily silver graph
Trend: expected decline