In the last two weeks, silver has been stuck between the 100-DMA and the 200-DMA.
Momentum is down, the RSI is signaling greater volatility, and local support confluence keeps buyers optimistic.
During Friday’s Asian session, silver (XAG/USD) is trading flat around $26.00, down 0.13 percent intraday. As a result, the shiny metal maintains its two-week-old swings between the 100- and 200-day moving averages despite weak oscillators.
Given the strength of immediate support between $25.70-65, which includes the 200-day moving average and a 61.8 percent Fibonacci retracement of the March-May upside, silver prices are expected to have an easier road north than they would otherwise.
The same could become easier if the 100-DMA level of $26.51 is broken to the upside. The metal’s immediate rises are protected by a 50 percent Fibonacci retracement near $26.30.
However, the commodity’s advance above $26.51 will first aim for the $27.00 mark before running into numerous resistances near $27.50 and early May tops near $27.90, which will be essential to the commodity’s rally to the yearly high of $28.75.
A daily close below $25.65, on the other hand, might take a pause around $25.30 and $25.00 before tackling the mid-April lows near $24.65.
A daily closing below $24.65 will, however, expose silver to a retest of the year’s bottom near $23.75.
Sideways is the current trend./n
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