Silver prices pulled back from the $70 mark on Monday, testing Fibonacci resistance before sellers re-emerged, leaving the metal trading at $68.61 at 20:20 BST. The second attempt to break above $70 in recent sessions signaled a potential double-top formation, reinforcing resistance at the psychological level.
Technical analysis highlighted a no-trade zone between $67.67 and $69.50, with the 20-day simple moving average (SMA) at $67.67 acting as a critical inflection point. The 200-day SMA, a longer-term trend gauge, remained at $61.24, providing distant support. The Average Directional Index (ADX) at 36.83 suggested a moderate uptrend, while the Moving Average Convergence Divergence (MACD) slipped to 0.94, just below its signal line at 1.00.
Momentum indicators showed signs of cooling. The Relative Strength Index (RSI) eased to 59.29, down from overbought territory, while a bearish rejection candle formed on August 21. Traders positioned for a potential reversal now watch the $66.14–$67.67 support band, with the SuperTrend indicator aligning at the lower bound of this range.
For reversal-focused traders, a short entry at $69.00 or $67.50 could target $66.14, $64.32, or $61.24, with a stop-loss at $70.10. The risk-reward ratio for this strategy ranges from 2.60 to 7.05, depending on the target. Trend followers, meanwhile, may look for a bounce off the 20-SMA or a decisive break above $70.15 to target $70.00, $72.00, or $75.00, with a stop at $66.14 and risk-reward ratios between 1.52 and 4.79.
The session’s price action underscored the tug-of-war between bulls and bears around silver’s near-term technical levels, with the metal’s ability to hold above $67.67 likely to dictate the next directional move.
