- Silver’s comeback from weekly lows loses steam.
- Is it a dead cat bounce amid dollar retreat?
- $26.50 barrier is a tough nut to crack for the XAG bulls.
Silver (XAU/USD) witnessed good two-way businesses so far this Wednesday, as volatility continues to play out amid fast-moving markets and dollar dynamics.
The white metal, initially, extended Tuesday’s tumble from near 7.5-year highs above $29 and dropped as low as $23.43 before staging a V-shaped reversal towards late Asia.
However, the rebound faltered, as the bears continue to guard the $26.50 level, which is the powerful confluence of the horizontal 200-hourly Simple Moving Average (HMA) and Fibonacci 50% Retracement (Fib) level of the recent correction.
Acceptance above that level, the buyers will aim for the next barrier aligned around $27.25, where the 61.8% Fib level of the same fall coincides with the bearish 50-HMA.