- Silver fails to extend Tuesday’s breakout of two-week-old resistance line, now support.
- Confluence of 100, 200-SMA marks a key hurdle to the north, $25 adds to the downside filters.
Silver stays heavy around $25.80, down 0.35% intraday, while extending the previous day’s pullback on early Wednesday. In doing so, the white metal fades break of the earlier resistance line stretched from February 25 as 50-SMA recalls the sellers.
Considering the receding bullish strength of the MACD, silver may drop towards immediate support line, previous resistance, near $25.20.
However, the commodity’s weakness past-$25.20, needs validation from $25.00 and the monthly low, also the lowest since late January, near $24.85, to call back the bears eyeing the yearly bottom close to $24.20.
Meanwhile, an upside break of 50- SMA level of $26.00 will not assure the bullion’s run-up as a confluence of 100 and 200-SMA near $26.75-80 offers a key hurdle to the north.
In a case where silver buyers conquer $26.80, the late February tops close to $28.35 should return to the charts.
Silver four-hour chart
Trend: Pullback expected
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