Silver edged lower on Thursday and was last seen hovering near the $28.80-85 confluence zone.
The technical set-up favours bearish traders and supports prospects for further depreciating move.
Silver struggled to maximize the previous day’s goodish bounce from over two-month lows and met with some fresh supply on Tuesday. The commodity remained on the defensive through the primary half the ecu session and was last seen hovering round the $28.80-85 region.
The mentioned area marks confluence support comprising of the vital 200-day SMA and therefore the 61.8% Fibonacci level of the $23.78-$28.75 move up. this could now act as a key pivotal point for short-term traders and help determine the near-term trajectory for the XAG/USD.
Given last week’s break below a symmetrical triangle, the near-term bias remains tilted in favour of bearish traders and supports prospects for an extra near-term depreciating move. That said, RSI on the daily chart has moved on the verge of breaking into the oversold territory and warrants some caution.