Silver has lately bounced from an intraday low, consolidating the previous day’s losses.
Traders are on the lookout for a triangular breakthrough due to strong momentum.
On a good breakdown, bears could aim for early April lows, thanks to the addition of the 200-SMA to the upward filters.
During Wednesday’s Asian session, silver (XAG/USD) rises from an intraday low, lately rising to $26.00. Since the beginning of July, the bright metal has formed a symmetrical triangle around a strong Momentum line, indicating that a significant break is imminent.
It should be noted, however, that the $26.80 200-SMA level acts as an additional filter to the north, keeping metal buyers cautious even if they manage to break through the $26.30 triangle resistance.
A clear run-up beyond $26.80, however, will not prevent the market from testing the mid-June lows near $27.40 before aiming for $28.00 and the previous month’s high of $28.55.
Meanwhile, a downside breach of the $25.85 triangle support will swiftly challenge June’s low near $25.50, although any additional fall will be rough.
Prior to the silver bears being able to target the yearly low of $23.77, the lows set in early March and April around $24.80-70 receive a lot of attention.
The upside potential is dwindling./n
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