Following last week’s break below the rising trendline support, then at $1,670, sellers have remained in complete control. That level now coincides with the mildly bearish 21-Daily Moving Average (DMA).
Unless bulls manage to find a strong foothold above the latter, any recovery attempts in the bright metal from two-week lows of $1,640 appear a dead cat bounce.
The immediate upside barrier is seen at the $1,650 level above which the previous intermittent lows around $1,660 could enact strong resistance.
The 14-day Relative Strength Index (RSI) is trading flatlined below the 50.00 level, keeping the bearish potential intact.
Therefore, daily candlestick closing below the $1,640 demand area is needed for a fresh downswing towards the $1,600 mark.
Ahead of that, the September low of $1,615 will challenge the bearish commitments.
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