Silver Price Analysis: Bulls again fail to establish a foothold above $18
- Silver loses its shine above $18 for the third straight day.
- A minor pullback to a short-term SMA support looks likely.
Silver bulls are having a tough time keeping gains above the $18 mark this week.
The semi-precious metal faced rejection at $18.07 early Wednesday and was last seen trading near $17.87 per ounce, representing a 0.16% decline on the day. Similarly, the metal failed to close above $18 on Monday and Tuesday.
The repeated rejection above $18 is suggestive of temporary bullish exhaustion and suggests scope for a pullback to the 10-day simple moving average (SMA), currently located at $17.53. The bias would turn bearish if and when prices fall below the 200-day SMA line at $16.88
On the higher side, a close above $18 would confirm a bull flag breakout on the daily chart. Flag breakout often accelerates the preceding uptrend. In silver's case, it will likely fuel a price rise above $20.
Daily chart
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Trend: Pullback likely