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- Silver remains under pressure after seeing its biggest daily decline in a month.
- The metal drops back below previous resistance after pulling 50-DMA back.
- 20-DMA, the monthly support line represents an important support, the falling trend line from the beginning of July complements the upward filter.
Silver (XAG / USD) holds the previous day’s bearish momentum, the weakest in a month, at $ 24.35 early Wednesday morning in Asia.
The bright metal slid back below a downward sloping resistance line on June 11th to justify the retreat from the 50-DMA and the sharp decline in the market.
The metal’s weakness is pulling the momentum line from a three-month high and reinforcing bearish signals.
However, starting August 9th, commodity prices will start falling towards a convergence of 20-DMA and an ascending trendline near $ 23.85.
However, the price’s continued weakness makes it vulnerable to revisiting the August 20 low of $ 22.87 before questioning the annual low of $ 22.15.
Meanwhile, the indicated resistance level from June and the 50-DMA near $ 24.50 and $ 24.80, respectively, are protecting silver’s near-term recovery moves.
Thereafter, starting July 6th, XAG / USD traders will need to cross a descending resistance line at around $ 25.10 to remember the bulls and bring them to an August high of $ 26.00.
Silver: daily chart
Trend: further weakness expected
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