Silver steadies after retreat from $30 earlier in the week
The retreat in silver is meeting a bit of a pause now as price holds closer to $27 as we get into European morning trade today.
The drop yesterday stalled at the 200-hour moving average (blue line) as buyers kept a defense before bouncing back above $27 and then retreating slightly again.
The upside push in the past few hours stalled at the 100-hour moving average (red line), now seen @ $27.28 and that remains a key near-term target as the price bias keeps more neutral i.e. trading in between the key hourly moving averages.
Silver got the benefit of the doubt in a massive rally since the latter stages of last week, jumping by over 19% from $25.20 to hit $30.10 at the highs.
While a surge in demand helped, that was still a case of a push going too far, too fast as it even prompted CFTC to come up with a warning and CME sent a warning signal by raising the margin for silver futures by 18% - helping to quell price speculation.
That said, silver buyers aren't entirely blown away just yet as evident by the chart above. And relative to early Thursday levels, price is still roughly 7% higher now.
In the bigger picture though:
The double-top pattern at around $30 is a bit of a troubling sign for buyers but I would expect any major dip back towards the 100-day moving average (red line) and key trendline support under $25 to be bought into - even more so if there is a deeper retracement back towards the 200-day moving average (blue line) and lows closer to $22.
