Spot silver ended 6.6% lower last week, posting the first weekly decline since June. There are more signs of profit taking actions, as the Commodities Futures Trading Commission (CFTC) reported that money managers' net long position of silver dropped 27.2% on week as of August 11, marking a third straight week of decline.
From a technical point of view, spot silver remains on the downside despite a modest rebound. It has retreated after reaching the 61.8% Fibonacci retracement resistance. The level at $27.85 might be considered as the nearest intraday resistance, with prices likely to test 1st and 2nd support at $25.10 and $23.40 respectively. In an alternative scenario, a break above $27.85 would trigger a further rebound to $28.55.
Source: TradingView, Gain Capital
