Silver extends its drop from the 100-day moving average and retests the intraday low.
Bears can aim for the 200-day moving average, and a stable RSI signals more grinding.
During Thursday’s Asian session, silver (XAG/USD) takes offers at $26.20, dropping 0.20 percent intraday, to refresh the day’s low.
The white metal pierced the 100-day moving average the previous day, but it was unable to cross the important moving average on a daily closing basis.
The shelved RSI indicator is used to guide the pullback moves, which stay between the 100-DMA and 200-DMA.
As a result, the recent falls have a wider negative gap before meeting range support at $25.85, which is the 200-DMA level. June’s low near $25.50 is also going to test the silver bears.
Meanwhile, a daily close above the 100-day moving average of $26.40 is required to refresh the monthly top, which is now around $26.80, before giving buyers control.
Then there’s the early June low near $27.00, which can function as a further filter to the north.
Silver prices are still relatively low inside the important DMA envelope.
Sideways is the current trend./n
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