Silver price is feeling the pull of the gravity, as firmer US dollar and Treasury yields dent its appeal. Further, China’s commitment to strengthen curbs on the commodities, so as to stem the worth rise, continues to weigh down the economic metal. However, rising inflation expectations and a bigger US stimulus could help check the downside in silver.
How is that the silver price positioned on the technical charts?
Silver Price: Key levels to observe
The Technical Confluences Detector shows that silver price faces powerful resistance round the $27.85 region, which is that the convergence of Fibonacci 23.6% one-day, Fibonacci 61.8% one-week and SMA10 one-day.
A convincing break above that level could expose the $28 mark, where the pivot point one-day R1 coincides with the pivot point one-month R2.
The next resistance awaits at $28.17, the confluence of the pivot point one-day R2 and Fibonacci 38.2% one-week.
On the flip side, immediate support is seen at $27.50, which is that the intersection of the previous day low and Bollinger Band four-hour Lower.
Further south, the pivot point one-day S2 at $27.32 might be tested.
Sellers will then target the confluence of the previous week low and pivot point one-day S3 at $27.20.