Silver price affected by the SMA pressure – analysis - 08-11-2016
Silver prices fluctuated on Tuesday around the resistance level 18.35 after it opened trading on a decline with the onset of trading this week after the rally witnessed by the metal during the previous week; where the metal was able to face back the SMAs 50 and 100 to add a further negative pressure for the price of the metal.
The metal declined during trading on Monday influenced by these resistances after falling during trading last weeks from the level of 19.35, breaking the pace of previous bullish movement showing the formation of a bearish channel during the previous medium trades, as the metal approached its upper board through the previous rise before it fell again.
Also the level of 18.25 represents 38.2% correction level for the long-term previous boarding from 13.57 to 21.13, in addition to the resistance of SMAs, which the price traded below it during the previous trades, which adds more resistance for the current area during the current trades.
Generally; the price of silver responds to the recent negative signals trading below the resistance 18.25, as the continuation of holding below this resistance will push it to further decline, which aims to re-retest the support 17.35 that coincide with the correction level of 38.6% for the same boarding, but trading back above the resistance level of 18.25 would return back the bullish moves in order to try to skip the resistance 19.35 initially.