Silver Price Action at Crucial Juncture After 29.5% Rebound
Silver's recent price action has been closely watched by traders and investors. After rebounding by as much as 29.5% from its mid-July low, silver tested support near its 20-day moving average at $65.67 on Monday. This level is also a Fibonacci retracement of the prior upswing.
The confluence of support levels near the 20-day moving average has created a well-defined zone that bulls will want to defend if the mid-July reversal is to remain valid. A sustained decline below this average would suggest further downside pressure, while staying above it would continue to support the integrity of the developing uptrend.
Two scenarios may unfold from here: either silver continues its bullish trend or a break below the 20-day moving average leads to further downside or a relatively quick recovery. The 200-day cluster near $72.44 and rising remains a significant resistance zone that could be further tested before support at the 20-day moving average fails.