Search ForexCrunch
  • Silver keeps the bounce off 200-bar SMA inside one-week-old ascending trend channel.
  • Multiple failures to break the key SMA joins bullish chart pattern to favor buyers.
  • Sellers can aim for monthly low on the downside break of the channel.

Silver prices stay mildly positive while taking rounds to $27.17 during Thursday’s Asian session. The white metal has been trading beyond 200-bar SMA despite the MACD histogram’s recent weakness. Also portraying the commodity’s strength could be an upward sloping trend channel formation since September 09.

As a result, $27.45 and the weekly high near $27.60 can lure silver buyers before highlighting the aforementioned channel’s resistance line, currently around $27.70.

Also acting as an upside barrier is the 61.8% Fibonacci retracement of the early-month declines by the bullion, at $27.73 now.

Alternatively, a 200-bar SMA level of $27.05 offers immediate support to the quote before the channel’s lower line, near $26.80, challenges the sellers.

It should, however, be noted that silver bears’ dominance past-$26.80 will be targeting the monthly low of $25.84.

Silver four-hour chart

Trend: Further recovery expected