- Silver remains depressed around lowest since September 25, flashed on Friday.
- Oversold RSI suggests bounce off short-term bearish chart pattern.
- 200-bar SMA can lure the bulls during the upside break to the channel.
Silver prices decline to $22.50, down 0.60% intraday, during Monday’s Asian session. The while metal dropped to the lowest in five weeks on Friday before bouncing off $22.33. However, failures to cross a downward sloping channel formation since November 16 keeps the sellers hopeful.
It should be noted that the oversold RSI conditions are likely to challenge the silver bears around the stated channel’s support line, at $22.18 now, failure to which can recall the $22.00 round-figure on the chart.
Also acting as the key downside support is September’s low near $21.65.
Alternatively, an upside clearance of the channel resistance, near $23.20, can trigger the run-up towards a 200-bar SMA level of $24.20.
During the quote’s further upside past-$24.20, the mid-month top around $25.10, and the monthly peak close to $26.00 will be in the spotlight.
Silver four-hour chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
GBP/USD retreats from new highs amid dollar strength
GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President.
EUR/USD falls toward 1.21 ahead of Biden´s inauguration
EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony.
Gold: Bulls recapture 200-DMA ahead of Biden's inauguration
Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration.
Bitcoin Price Prediction: Shaking a tree always makes the ripe fruit fall
BTC price is moving away from the historical high and seeks support at the 23.6% level of the Fibonacci retracement system from the entire previous rally.
US Dollar Index: Upside target remains at 91.00
DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.