Silver is attempting to form a price base around $16.50 per oz.
The stochastics are converging in low ground and the longer lower shadows on the recent daily candlestick formations suggest selling pressure has been well received.
The RSI at 32 suggests silver is oversold in the short term.
Additional support below is seen at $16.56, which marks the 61.8% Fibo of the year-to-date rally.
Key support could also be found around $16 per oz, a level that capped prices in the first quarter and where support was found in the June price-dip.
Prices remain below key moving averages – the 200 DMA at $17.65 per oz and the 20 DMA at $17.71 are acting as immediate resistance.
Source: The Bullion Desk
