Silver retreats after bullish movement from a double bottom.
Silver has been moving sideways since the price hit the six-month high of 15.87 on January 4. The neutral to bearish picture in the very short-term looks to last for a while longer after prices failed to stand near the aforementioned high.
Technically, in the daily timeframe, the RSI lies below the 70 oversold level and is falling, while the MACD oscillator printed a bearish cross with its trigger line in the positive area as well.
Looking at the bigger picture the commodity posted a double bottom formation around 13.90 and exited from the narrow range of 13.90 – 14.90, creating an upward tendency. In case of a continuation of this move, the bulls could break the 15.87 resistance and send prices towards the 16.20 barrier. More advances could drive the market to the next stop of 16.47, identified by the high on June 25.
Alternatively, additional declines may drive the price towards the 20-day simple moving average (SMA) around 15.35 at the time of writing, before the 14.90 support, which overlaps with the 40-day SMA, comes into view. Beneath the latter, 14.33 could be another level in focus.
Summarising, in the long-term view, the white metal has remained in a downtrend since July 2017, without a significant bullish correction.
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