Silver Price Analysis: Challenges critical support after rejection above $28

Silver drops from multi-day highs because the US dollar rebounds with yields.
XAG/USD fails to seek out acceptance above the $28 mark once more .
Defending $27.60 support is critical for the silver bulls.
Silver (XAG/USD) is trading within the red below $28, looking to increase Tuesday’s sharp pullback from ten-day highs of $27.56.

The US dollar rose in tandem with the Treasury yields on strong US ISM Manufacturing PMI while inflation concerns and stimulus hopes fail to supply any support to silver price.

Silver’s daily chart shows that the worth wavers during a two-week-old symmetrical triangle, now testing the lower boundary at $27.60. That level also coincides with the upward-sloping 21-daily moving average (DMA).

The 14-day Relative Strength Index (RSI) has turned south but remains above the midline, suggesting that the downside is probably going to be limited.

A daily closing below the abovementioned support could yield a triangle breakdown, opening floors towards the $27 threshold.

Further south, $26.40 could emerge as powerful support, comprising of the 50 and 100-DMAs.


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