Silver oscillates around a two-week high while battling major DMAs.
Bulls benefit from a stronger RSI and a sustained recovery from the 200-DMA.
The bullish filters are augmented by a descending trend line from May 18.
Before Tuesday’s European session, silver (XAG/USD) is in a three-day rise, tempting the highest levels since June 18. However, the brilliant metal is up against 21-DMA while attempting to maintain the 100-DMA breakout.
Buyers are encouraged by the commodity’s impressive recovery from the 200-day moving average and 61.8 percent Fibonacci retracement of March-end to May upside.
However, for the bulls to go for the early June low near the $27.00 mark, a daily closing above $26.60, which includes the 21-DMA, is required. Even yet, the silver purchasers will be challenged by a downward sloping trend line from May, which is currently approaching $27.32.
Alternatively, pullback moves could pause at the $26.25 Fibonacci retracement level before retesting the $25.77 200-DMA level.
The 61.8 percent Fibonacci retracement level and the previous month’s low, respectively around $25.65 and $25.50, will test the quote’s weakening past $25.77.
To summarize, silver remains on a rough consolidation path.
Recovery is predicted to continue./n
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