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Today, we are diving into the intriguing world of silver trading and analyzing its current trajectory. The sharp decline in silver prices has caught the attention of many traders, leading us to believe that silver may be heading towards a crucial support level – the 200-Day Moving Average (MA) at 26.02.
While the 200-Day MA is a key indicator on its own, there are other factors supporting the notion of silver finding support around this price zone. From the swing high at 26.14 to the completion of a 61.8% Fibonacci retracement at 25.98, the signs all point towards potential support at the 200-Day line.
Why the 200-Day Zone Matters
As the current decline tests the 200-Day MA for the first time since a breakout rally in March, the behavior of silver around this level will provide valuable insights. The combination of various indicators aligning with the 200-Day MA increases the likelihood of a bullish reversal if support holds.
However, in the event that the 200-Day MA fails to act as support, silver could be at risk of testing the lower uptrend line of a rising parallel trend channel, currently estimated at 23.53. While a significant drop to this level is not the most probable scenario, it is worth keeping an eye on as a potential bottom line target.
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