Silver prices rise around the weekly high, but are slightly bid over a two-day upswing.
Until the $26.00 collapse, the bullish MACD keeps buyers hopeful.
The bullish filters are augmented by a falling trend line from June 11 and the 200-SMA.
The downside is limited to the early March low by a weekly horizontal region.
By early Thursday, silver (XAG/USD) had dropped back to $26.00, up 0.15 percent intraday around $26.17. While stepping back from the weekly high, the brilliant metal fails to prolong the upside break of a two-week-old resistance line, which is now the immediate support.
It should be highlighted, however, that commodities prices must break through the $26.00 barrier to re-establish the bearish impetus, which is aimed at a short-term horizontal support zone near $25.50.
Silver bears will also be pushed to the early March lows at $24.85, if the price falls below $25.50.
In the meanwhile, bullish MACD predicts a recovery off the last resistance line near $26.15, but purchasers will be tested by a three-week-old declining trend line near $26.40 after that.
If metal prices rise above $26.40, the 50 percent Fibonacci retracement level from June’s decline could test the upside around $27.00 before testing the 200-SMA level of $27.25.
Silver prices are expected to remain under pressure until they reach the crucial SMA level.
Pullback is projected as a trend./n
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