- Silver’s comeback from weekly lows loses steam.
- Is it a dead cat bounce amid dollar retreat?
- $26.50 barrier is a tough nut to crack for the XAG bulls.
Silver (XAU/USD) witnessed good two-way businesses so far this Wednesday, as volatility continues to play out amid fast-moving markets and dollar dynamics.
The white metal, initially, extended Tuesday’s tumble from near 7.5-year highs above $29 and dropped as low as $23.43 before staging a V-shaped reversal towards late Asia.
However, the rebound faltered, as the bears continue to guard the $26.50 level, which is the powerful confluence of the horizontal 200-hourly Simple Moving Average (HMA) and Fibonacci 50% Retracement (Fib) level of the recent correction.
Acceptance above that level, the buyers will aim for the next barrier aligned around $27.25, where the 61.8% Fib level of the same fall coincides with the bearish 50-HMA.
The hourly Relative Strength Index (RSI) has turned flat but remains below the midline, in the bearish territory, suggesting that the bears could likely extend control in the coming hours.
To the downside, the 21-HMA at $25.35 appears to offer immediate cushion after the price tested the 23.6% Fib support at $24.86 in the last hour.
XAG/USD: Hourly chart
XAG/USD: Additional levels