XAG/USD Has No Acceptance above $28

Silver moved into negative territory on Wednesday, dropping below $28 and thus holding onto the retreat from ten-day highs of $27.56 begun yesterday. 

The daily chart shows that silver’s price hovers in a two-week-old symmetrical triangle, heading for the lower boundary at $27.60. This level also coexists with the upward-turning 21-daily moving average. 

A dive in silver’s price is occasioned by the rise of the USD dollar and the Treasury yields that, in turn, were boosted by strong US ISM Manufacturing PMI. Investors’ worries about inflation and stimulus do not work to silver’s advantage either. 

The 14-day Relative Strength Index (RSI) has weakened but it still remains above the midline, which suggests that downside will be limited. If on a day silver closes below the mentioned support mark, there might be a triangle breakdown bringing the possibility of the $27 threshold. 

If silver’s luck continues to turn south, the $26.40 mark will act as powerful support. It will comprise both the 50-day and 100-day DMAs. 

On a positive side, if silver’s price bounces from the triangle support, the $28.50 supply area will emerge, which might turn the white metal’s trend bullish. At this point, Tuesday’s high and pattern resistance will overlap. 

Silver traded at 27.9 at the open on Wednesday. It was last seen trading at 27.68. A price change constitutes so far -0.68%.