Silver Bulls Eye Breakout Above Key Resistance

The momentum in silver prices has shifted in favor of bulls in the short-term, as indicated by the Relative Strength Index (RSI) which dropped to its neutral level before rebounding. To resume the uptrend, silver must clear its 100-day Simple Moving Average (SMA) at $67.66.

If it breaks above this level, silver could expose the August 28 swing high of $71.12 and then the 200-day SMA at $72.78. A further breach could lead buyers to challenge the May 25 high at $78.83 or even $80.00.

However, if XAG/USD struggles to break above the 100-day SMA, sellers may drive prices towards the September 2 swing low of $63.32. This could expose the 50-day SMA at $61.85 before silver registers a leg lower towards $60.00.