- Silver is recovering from the 2-year low while the 5-month-old support line is challenging the bears.
- Oversold RSI conditions strengthen recovery moves.
- Former mid-June support line protects for an immediate rebound, 61.8% Fibonacci retracement from 2020-21 lures bears to the upside.
Silver (XAG/USD) surges to $19.90 during Monday’s Asian session, rebounding from a two-year low after a five-week downtrend.
As of early February, even as the bright metal refreshed multi-day lows the previous day, it failed to provide a daily close below a down-sloping support line, which stood around $19.60 at press time.
In addition to failing to break the key support line on a daily close basis, the oversold RSI (14) also points to the near term recovery in the price.
However, the mid-June support-resistance line of around $20.35 protects the metal’s immediate recovery.
After that, the 10-DMA and a down sloping resistance line from April 18th around $20.60 and $21.00 respectively will be important to call back the XAG/USD buyers.
On the contrary, the aforementioned several-day-old support line near $19.60 limits silver’s immediate downside, not to mention the oversold RSI conditions.
If the price falls below $19.60, the possibility of a 100 pips break towards the 2020-21 61.8% Fibonacci retracement upside near $18.50-55 cannot be ruled out.
Silver: daily chart
Trend: Further recovery expected
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