- Silver edges higher following the corrective pullback from multi-day low.
- Firmer RSI, successful break of support-turned-resistance back the bulls.
- 200-SMA adds to the upside filters, weekly support line offers extra challenge for bears.
Silver (XAG/USD) consolidates the last week’s slump, up for the third consecutive day around $23.88 amid Tuesday’s early Asian session. In doing so, the metal buyers battle 50-SMA after recently crossing the previous support line from June 29.
Given the firmer RSI conditions and a clear break of the immediate hurdle, silver many extend the recovery moves towards July’s low surrounding $24.50. During the rise, the $24.00 round figure may offer an intermediate halt.
It should be noted, however, that the metal’s run-up beyond $24.50 will be challenged by the 200-SMA level of $25.24, a break of which will refresh the monthly peak of $26.00.
Meanwhile, a pullback from 50-SMA, around $23.90, will drag the quote back to the previous support line near $23.80 before highlighting a one-week-old rising trend line near $23.55.
In a case where silver bears keep the reins below $23.55, Thursday’s low around $23.00 and the yearly bottom surrounding $22.15, marked early last week, will be the key to follow.
Silver: Four-hour chart
Trend: Further recovery expected