Silver Finds Support At 50-SMA, Bearish Bias Holds

Technical analysis of Forex market

Silver has staged a notable rebound after its long-term downtrend halted at the 21.40 region in September. However, in the short term, the precious metal seems to be losing traction, with the bears battling to push the price beneath the 50-day simple moving average (SMA) in the last few sessions.

The short-term oscillators further confirm that bearish forces have gained the upper hand. The MACD histogram has crossed below its red signal line in the positive area, while the RSI is flatlining below its 50-neutral mark.

Should the selling pressure intensify and the price moves below the 50-day SMA, the next hurdle for the bears might be met at the 23.37 region. Breaching this obstacle, the price might then encounter strong support at 23.00 or even lower at the 22.40 level. A further decline would send the price to test the 22.00 psychological mark before moving towards the September key support point of 21.40.

Alternatively, if buyers retake control, immediate resistance could emerge near the 24.30 region. Overcoming this level, the price ascent may next stop at 24.80 or higher up at the 25.60 barrier. Should the precious metal cross above these barricades, the bulls could then target the 26.60 region.

Overall, silver’s medium-term rebound seems to be running out of steam. Only, a clear break above 25.60 would turn the short-term picture back to positive and revive the bulls’ hopes.