- Silver buyers attack 100-HMA to justify the bounce off 200-HMA.
- RSI recovery also favors the bulls but a clear break beyond 100-HMA becomes necessary.
- 61.8% Fibonacci retracement adds to the downside filter, weekly horizontal area offers extra resistance.
Silver buyers attack intraday top near $27.90 in a consolidation move during early Wednesday. The white metal dropped the previous day before staging a rebound from 200-HMA. However, the recovery moves battle 100-HMA while taking rounds to 50% Fibonacci retracement of May 21 to June 01 upside.
Given the RSI recovery from the oversold area, silver prices are likely to extend the latest U-turn towards crossing the immediate $28.00 hurdle.
Though, the weekly horizontal area near $28.15, followed by a 23.6% Fibonacci retracement level near $28.25, could test the short-term buyers afterward. Additionally, $28.40 and the monthly high of $28.55 are extra filters to the north.
Meanwhile, a downside break of 200-HMA, around $27.80 by the press time, will seek validation from the 61.8% Fibonacci retracement level of $27.70 before targeting Friday’s low close to $27.40.
It should, however, be noted that the bulls are less likely to recede control until the bullion stays beyond March’s top surrounding $26.60.
Silver hourly chart
Trend: Recovery expected
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