- Silver prices remain on the backfoot despite flashing bullish candlestick formation the previous day.
- 21-day SMA challenges the intraday bears amid downbeat MACD signals.
- The monthly resistance line becomes the key upside hurdle.
Silver traders fail to extend the late-US session recovery moves from $26.06 beyond $26.60 as the quote drops to $26.47 during the early Wednesday. In doing so, the white metal shrugs off the Dragonfly candle formed the previous day.
While bearish MACD and sustained trading below a three-week-old falling trend line could be spotted as supporting the sellers, 21-day SMA near $26.45 probes the bullion’s further downside.
Other than the short-term SMA, the previous day’s low around $26.00 will also be the key as traders will wait for a total rejection of the bullish candlestick before stepping in to target the monthly low of $23.43.
Alternatively, $27.00 and nearby resistance line, at $27.25 now, could challenge the short-term buyers ahead of diverting them to August 18 top near $28.50.
In a case where the bulls dominate past-$28.50, the monthly peak close to $29.85 and $30.00 will be in the spotlight.
Silver daily chart
Trend: Pullback expected
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