In a dreadful state, Silver Price (XAG/USD) struggles to find its footing as it hovers near $23.55, attempting a feeble recovery in Wednesday’s European session. The precious metal, bruised and battered, manages to eke out modest gains after plunging to its lowest point in two weeks, inflicting a painful blow, marking a new record for the biggest daily loss in a month. Ouch!
Although the desperate risk takers find solace in the oversold RSI conditions, providing a glimmer of hope, the bearish MACD signals and an impending Bull Cross between the 100-SMA and the 200-SMA flex their muscles, ready to pounce on the weakened Silver bulls.
If, against all odds, the Silver buyers muster enough strength to validate the bull cross by triumphing beyond the SMA confluence lurking around $23.75, brace yourself for a swift charge towards the formidable 61.8% Fibonacci retracement level from the downtrend witnessed in July to August, nestled around $24.15, followed by a challenging journey to conquer the 50-SMA frontier at $24.25. It won’t be a walk in the park!
Alas, defying the odds seems like a distant dream as a menacing downward-sloping resistance line, dating back to July 20 and standing tall around $24.65 (yes, it’s a tough nut to crack), taunts and mocks the exhausted Silver buyers lingering beyond $24.25.
On the other side of the battlefield, the Silver bears, hungry for carnage, find themselves confronted by the formidable enemies – the 38.2% and 23.6% Fibonacci ratios. These treacherous levels, lurking menacingly near $23.40 and $22.95, serve as a daunting challenge before directing the blood-thirsty bears towards their ultimate feast at the previous monthly low, enticingly positioned around $22.25. Bon appétit!