- Silver fades recovery moves from $25.84, seesaws around $26.10-20.
- Bearish MACD, failures to cross 50-day SMA favor sellers.
- Six-week-old falling trend line adds to the upside barriers.
- 61.8% Fibonacci retracement offers strong support ahead of the yearly bottom.
Silver steps back from 50-day SMA, currently taking rounds to $26.10, during the initial Asian session on Friday. The white metal refreshed the weekly top the previous day before declining from the key SMA.
Given the bearish MACD joining the metal’s failures to cross 50-day SMA, silver is likely to remain depressed. However, sellers await a clear downside break of 50% Fibonacci retracement of November 2020 to February 2021 run-up, at $25.96, for fresh positions.
It should be noted that the commodity’s declines past-$25.96 will again try to conquer the 61.8% Fibonacci retracement level of $25.00 with eyes on the yearly bottom of $24.18.
Meanwhile, an upside clearance of 50-day SMA, currently around $26.45, needs to cross a falling trend line from February’s top, at $29.92, to recall the silver buyers.
Overall, silver prices are likely to mark another attempt to break the key Fibonacci retracement support but bears are waiting for confirmation.
Silver daily chart
Trend: Further weakness expected
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