- Silver fades upside momentum after refreshing the weekly top.
- Confluence of 200-SMA, 38.2% Fibonacci retracement also challenges the bulls.
- Sellers will look for entries below three-week-old horizontal support.
Silver prices waver around $25.30 during Wednesday’s Asian session. In doing so, the white metal buyers confront a downward sloping trend line from March 18 after refreshing the weekly top the previous day.
Although upbeat Momentum favors the quote’s upside break of the stated resistance line, around $25.35, a convergence of 200-SMA and 38.2% Fibonacci retracement level of February 23 to March 31 downside, near $25.52, will be the tough nut to break for the silver bulls.
It should, however, be noted that a clear upside past-$25.52 will propel the quote towards a 61.8% Fibonacci retracement level of $26.60.
Alternatively, pullback moves may aim for the $25.00 threshold whereas 23.6% Fibonacci retracement and a horizontal area comprising multiple lows since March 25, close to $24.65, should restrict the commodity’s further weakness.
In a case where the bullion drops below $24.65, March’s low near $23.77 should gain the market’s attention.
Silver four-hour chart
Trend: Further recovery expected
Share
