FX.co ★ Retired-Mogambo | XAG/USD, SILVER

Over the last eleven days, silver's volatility has decreased as it tests near-term support between the midline of a rising channel and the 61.8% Fibonacci retracement of the last increase. With a low of $71.79 on Thursday, the Fibonacci level, which is currently at $71.85, was explicitly challenged as support. That low is now a crucial location of short-term structural support and a higher swing low. Interestingly, the session ended above the channel's median despite a minor intraday undercut. Since the March spike low of $61.01, there hasn't been a decline below the midline. That day, a bullish hammer candlestick pattern developed, emphasizing buyer interest close to support. The hammer pattern underwent a one-day bullish reversal on Friday, but the recovery was unsuccessful. As a result, Monday's session saw a dip into Thursday's range and another test of support close to the channel midline. The session's low was $73.85, while its daily high was $76.30. A decline below $71.79, if accurate, would suggest a bearish continuation signal. The 78.6% Fibonacci retracement at $67.07, which is in close proximity to the 200-day moving average at $66.95, and the higher swing low of $70.87 may serve as support below that level. Even after a pullback to successfully test previous trend support as resistance, a collapse below the uptrend line and a few important moving averages has led to a slow, choppy consolidation. During the consolidation, a lower swing high at $78.83 developed, and it is currently an important component of the structure. Furthermore, Friday's peak at $76.68 created a somewhat lower swing high. The first positive reversal signal in the current structure would be given by a move above that level. Additionally, the 10-day and 50-day moving averages, which are currently in line with Friday's high, would be reclaimed. The 20-day moving average would probably be reclaimed if the price rose over the $78.83 mark.