- Silver bounces off multi-day low but stays below a seven-week-old support line.
- Bulls remain off the table until witnessing a clear break above 200-DMA.
- 61.8% Fibonacci retracement level, September 2020 low lure the bears.
Silver (XAG/USD) prints 1.55% intraday losses despite recently bouncing off the yearly low of $22.16 to $24.00 during Monday’s Asian session.
While failures to stay below an ascending support line from September 2020 triggered the metal’s latest bounce, the quote remains below a downward sloping trend line from late June.
In addition to the sustained breakdown of the short-term support line, descending Momentum line also backs the silver bears to retest the 50% Fibonacci retracement level of June-August 2020 upside, near $23.40.
However, any further downside will need a daily closing below the stated 11-month-old support line near $22.60 to convince bears.
Also acting as strong supports is 61.8% Fibonacci retracement level and September 2020 lows, respectively near $21.90 and $21.60.
On the flip side, a clear break of the previous support line from June, near $24.10, needs to cross the previous month’s low surrounding $24.50, to convince short-term silver buyers.
It should be noted, however, that the bulls may remain skeptical until the quote stays below the 200-DMA level of $25.92.
Silver: Daily chart