Silver (XAG/USD) is trading in the red below $28, looking to extend Tuesday’s sharp pullback from ten-day highs of $27.56. The US dollar rose in tandem with the Treasury yields on strong US ISM Manufacturing PMI while inflation concerns and stimulus hopes fail to offer any support to the silver price. Silver’s daily chart shows that the price wavers in a two-week-old symmetrical triangle, now testing the lower boundary at $27.60. That level also coincides with the upward-sloping 21-daily moving average (DMA).
The 14-day Relative Strength Index (RSI) has turned south but remains above the midline, suggesting that the downside is likely to be limited. A daily closing below the abovementioned support could yield a triangle breakdown, opening floors towards the $27 threshold. Further south, $26.40 could emerge as powerful support, comprising of the 50 and 100-DMAs. Alternatively, any bounce from the triangle support could revive the bullish interest, exposing the $28.50 supply zone. At that point, Tuesday’s high and pattern resistance intersect.