Silver has been trending downwards in the short term after its recent rebound was rejected by the 200-day simple moving average (SMA). However, in the last few daily sessions, the metal has gained traction, crossing above its 50-day SMA and recouping part of its losses.
The momentum indicators endorse the likelihood of a sustained recovery for the commodity. The stochastic oscillator is marching higher in the overbought area, while the RSI is hovering above its 50-neutral mark.
Should the positive momentum intensify, 23.62 might be the initial resistance point for the price. Crossing above this region, the bulls could target the January high of 24.70 before the price ascends towards the 25.38 barrier. Piercing through these resistance levels, the spotlight could turn to the 26.00 psychological mark.
On the flipside, if bearish forces regain the upper hand, the metal could encounter immediate resistance at its 50-day SMA, currently at 22.80. Further downside pressure may send the price to test the 22.00 psychological mark. Falling beneath this hurdle, the price decline could halt at the 17-month low of 21.40, which held strong twice in the last five months.
In brief, despite silver’s near-term rebound, its medium-term picture remains negative. For that bearish tone to reverse, the price needs to jump above the 25.38 region
