The bright metal jumped to the highest levels since September 07 the previous day before snapping a two-day uptrend, which in turn portrayed a bearish spinning top candlestick on the daily chart. Also keeping the sellers hopeful is the commodity’s pullback below the 200-day EMA.

However, the resistance-turned-support from July 06, around $23.95 by the press time, joins the firmer RSI line to challenge the quote’s further weakness.

Also acting as a downside filter is another trend line support from early July, near $23.30. It’s worth observing that a monthly ascending trend line at $23.15 adds to the supports and challenge the XAG/USD bears. On the contrary, an upside break of a 200-day EMA level of $24.54 needs validation from September’s high of $24.86 before targeting the August month’s peak of $26.00.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The constructive set-up is reinforced by bullish technical indicators, which are still far from being in the overbought zone. That said, slightly overbought RSI (14) on the 4-hour chart failed to assist the XAG/USD to capitalize on its move beyond the 38.2% Fibonacci level of the $28.75-$21.42 downfall, at least for now.

Nevertheless, the bias remains tilted firmly in favour of bullish traders. Hence, a subsequent move towards testing September monthly swing highs, around the $24.80-85 region, remains a distinct possibility. Bulls might eventually aim to reclaim the key $25.00 psychological mark, which coincides with the 50% Fibo. level.

On the flip side, the $24.00 round-figure mark now seems to protect the immediate downside. Any subsequent decline could be seen as a buying opportunity near the $23.75-70 region. This, in turn, should help limit the corrective pullback near the mentioned trend-line support breakpoint, around the $23.50-45 region.

Silver Has Broken Above 24.0

Oct 22 2021