Silver prices (XAG/USD) registered gains of over 1%, trading at $64.24 after rebounding from daily lows of $62.94. Despite the positive move, the metal remains below the 'head and shoulders' neckline, which is positioned around $64.10-$64.15, signaling that the short-term trend continues to favor the bears [1]. Technical indicators, such as the Relative Strength Index (RSI), remain below the neutral 50 level, suggesting that bearish momentum is still present even as the price attempts to recover [1].
If silver manages to break above $65.00, it could pave the way for a recovery toward the 100-day Simple Moving Average (SMA) at $66.94, with further resistance at $67.00 and the 200-day SMA at $73.05. Conversely, immediate support lies at $64.00, with further downside targets at the 50-day SMA of $62.55, the July 22 high-turned-support at $61.01, and ultimately $60.00 if bearish pressure intensifies [1].
The article highlights that silver's price movements are influenced by factors such as the US Dollar's strength, interest rates, and industrial demand, particularly from the US, China, and India. However, the current technical setup suggests sideways trading unless the neckline is decisively cleared, with the overall momentum still tilted to the downside [1].
CONCLUSION
Silver has posted a daily gain but remains technically vulnerable below a key resistance level, with bearish momentum persisting. Unless the price breaks above the neckline, sideways or downward movement is likely to continue in the short term.