- Silver keeps Friday’s upbeat performance while confronting a short-term key trend line resistance, reversed from $25.30 earlier.
- 21-day SMA offers immediate support, 50-day SMA acts like an upside barrier.
Silver prices pick-up bids to $25.26, after initially refreshing the three-week top, during Monday’s Asian session. In doing so, the commodity prints 0.23% intraday gains while probing a descending trend line from September 01.
With the normal RSI conditions joining a clear break of 21-day SMA, buyers are likely to keep the reins, which in turn will aim for a 50-day SMA level of $26.06 during the further upside.
However, any more rise beyond the immediate SMA resistance will have to cross the falling trend line from August 07, at $27.35 now, to convince the bulls.
Meanwhile, a downside break of 21-day SMA, currently around $24.60, will aim for a two-week-old support line figure of $23.50.
In a case where the bears keep the reins after $23.50, the monthly low near $22.85 and the previous month’s bottom surrounding $21.65 will be in focus.
Silver daily chart
Credit: FX Street