Silver’s Positive Impetus Looks Feeble as Bearish Risks Dictate

Silver is creeping higher to retest the durable tentative down trend line pulled from the all-time high of 30.08. However, todays footing off the flattening 50-period simple moving average (SMA) appears somewhat not up to the task at hand, as lingering above are the commanding bearish 100- and 200-period SMAs.

The short-term oscillators are reflecting that the commodity is struggling to improve but positive momentum seems to be growing. The MACD is slightly beyond the zero line and slowly increasing over its red trigger line, while the rising RSI is in bullish territory trying to push past its previous high. The stochastic oscillator is maintaining its bullish charge and is endorsing positive sentiment in the commodity.

Maintaining the current trajectory, buyers’ efforts could quickly be dismissed by the nearby limiting zone of 25.24-25.40, reinforced by the overlapping descending trend line – which has secured a two-month decline. Yet, triumphing over this crucial resistance zone that also contains the 100-period SMA, the price may jump towards the 25.82 high. Should these logged gains stretch above the heavy 200-period SMA at 25.96, the 26.24 barrier could then step into the spotlight.

Alternatively, if negative pressures overshadow a price pickup, an initial foothold may arise again from the 50-period SMA and the mid-Bollinger band around 24.73, ahead of the support band of 24.48-24.65 just beneath. Another leg lower could then meet the 24.20 low, before a price dive challenges the lower Bollinger band at 24.04 and the three-and-a-half-month low of 23.76. Successfully sinking past this trough and the 23.50-23.64 critical base, the bears may then aim for the 22.74 barrier.

Summarizing, as long as the price persists below the downtrend line, a bearish bias will command the commodity. Yet, a shift above 26.89 could see silver regain some of its attractive shine.