Silver Consolidates Around Key Resistance Levels
Silver prices appear poised to consolidate around $64.70-$66.70 after recent gains, but market structure suggests a neutral-to-downward bias. Despite this, momentum indicators favor bulls in the short term.
The Relative Strength Index (RSI) indicates that silver is currently in an uptrend, but bulls must clear key technical resistance levels before the metal's price can shift bullish. The first major hurdle is the 100-day Simple Moving Average (SMA) at $68.72.
Clearing this level would set the stage for further gains, with the next target being $70.00 and then the 200-day SMA at $71.73. However, if bulls fail to overcome these obstacles, the metal's price could fall back to the August 14 daily low of $63.51.
Below this level, support is found at the 50-day SMA at $61.31 and then at $60.00, with a breach of this threshold exposing an upslope trendline in the $58.40-$58.60 range.