Silver Price Analysis: Upside momentum fizzles above $25.00
- Silver bulls catch a breather around one-month high.
- 50-day SMA offers immediate support, bulls to have a bumpy road ahead.
Silver prices drop to $25.14, down 0.98% intraday, as markets in Tokyo open for Friday’s trading. The white metal surged to the highest since October 12 the previous day while crossing 50-day SMA.
However, the inability to cross a broad horizontal resistance area comprising the lows marked during the mid-August and early-September, as well as October high, seems to drag the quote off-late.
Should the bullion declines below the nearby rest-point of 50-day SMA, at $25.00 now, multiple stops around $24.55/50 can please the silver sellers ahead of highlighting the one-week-old support line, at $23.55 now.
Meanwhile, a clear break of the $25.55/85 resistance region will escalate the commodity’s rise towards a falling trend line from September 01, currently around $26.30.
During the silver bulls’ reign past-$26.30, the mid-September peak surrounding $27.60 will gain market attention.
Silver daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
