- Silver keeps bounce off January 18 inside a bearish chart pattern.
- RSI recovery suggests further upside, 200-SMA adds to the resistance.
- Three-week-old support line offers extra support to watch during pullback.
Silver picks up bids to $25.15 while extending the previous day’s bounce-off multi-day low amid Friday’s Asian session. The while metal dropped to the fresh low nine-week bottom before recovering from $24.40 on Thursday.
Given the upbeat RSI, the white metal is likely to keep the corrective pullback. Even so, a one-week-old descending channel formation and 200-SMA defend bears.
Hence, the latest recovery moves seem less important until staying below the stated channel’s resistance line near $25.31.
While a clear rejection of the bearish chart formation will attack the 200-SMA level of $26.46, silver bulls will need a strong push to cross the key hurdle.
Alternatively, the $25.00 and the early-month low near $24.80 can test the commodity’s pullback moves ahead of the channel’s support line near $24.50.
If at all the bullion fails to bounce off $24.50, a support line from March 05, close to $24.35, will challenges the bears afterward.
Silver four-hour chart
Trend: Further recovery expected