- Silver struggles to stage a convincing rebound on Wednesday.
- 20-day SMA continues to act as dynamic resistance near $27.80.
- Next significant support is located at $27.20 ahead of $27.00.
After breaking below the ascending trend line coming from April earlier in the month, the XAG/USD pair confirmed that line as a resistance for the third time on Monday and extended its slide during the first half of the week. Although silver tried to stage a rebound earlier in the day, it struggled to break above the 20-day SMA, which is currently located at $27.80. As of writing, XAG/USD was virtually unchanged on the day at $27.65.
Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart stays flat around 50, suggesting that the pair is struggling to gather bullish momentum.
On the downside, the initial support is located at $27.20 (Fibonacci 23.6% retracement of April-June uptrend) ahead of $27 (psychological level/50-day SMA). With a daily close below the latter, the door will open for additional losses toward the 100-day SMA at $26.60.
The initial hurdle aligns at $27.80 (20-day SMA) before $28 (psychological level) and $28.20 (ascending trend line and the end of the two-month uptrend). In the near term, the pair might need to break above this latest resistance to reattract buyers.
Silver daily chart
Additional levels to watch for