Silver rebounds after sharp profit-taking – OCBC

FXStreet Insights Team FXStreet

Silver recovered overnight after a sharp pullback driven by profit-taking following a rapid year-to-date surge of more than 25%. Silver last seen at 91.29 levels, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

Silver pulls back as momentum shows early fatigue

"Silver clawed back losses overnight after initial slippages (of as much as >7% weaker) seen during the session. The pullback was attributed to profit-taking activities after the sharp greater than 25% run-up year-to-date, making the rally one of the most rapid in modern history. Though the broader structural bull case remains intact, the technical backdrop signals some caution after an exceptionally rapid extension."

"Bullish momentum on daily chart intact though there are signs of it fading while RSI shows tentative signs of turning lower from overbought conditions. A potential bearish divergence on MACD is not ruled out – though price action still needs monitoring. Support at 84, 76.30 levels (21 DMA)."

"Resistance at 98.70 (138.2% fibo projection from the low of Oct to Dec peak), 103.20 (150% fibo). Bias remains to buy dips."

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FXStreet Insights Team

FXStreet

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