Silver’s 20.8% rally from the March lows of 23.78 has been contained at a Donchian resistance of 23.78. A weaker RSI and MACD profile suggest some consolidation and retracement moves are ongoing. Nonetheless, in framing silver’s rise from March 2020’s 11.64 lows, XAG/USD still holds an inherent bullish bias unless it breaks under 23.81, Benjamin Wong, Strategist at DBS Bank, reports.
“The technical indicators are hinting some near-term weakness as prices grapple with a weakened relative strength index (RSI) and moving average convergence/divergence (MACD) profile.”
“June is typically a month of consolidation for precious metals. Hence, silver’s aged two-month uptrend should cool off for a bit of consolidation and retracement play.”
“Silver’s rise from the ashes of March 2020’s 11.64 lows remain caged in a bullish setting, unless it treks under 23.81 and a total lost cause is triggered if 20.75 is traded under. Fairly good support is accorded at the cloud support levels of 26.05-26.27. Additionally, the convergence of the 50-day moving average (DMA) 26.58 and the 100-DMA 26.48 is something to take note of.”
“With near-term technical indicators showing a weakened hold on prices by the bulls, one should expect some apples to fall off the tree before silver stabilises and regroup for a resumption of higher prices. A resumed rally should eye 30.72, the long term 50% Fibonnaci marker.”
