Commodities

Technical Analysis – Silver climbs above 200-SMA in near term; still bearish in long-term

Posted on July 10, 2019 at 1:07 pm GMT

Melina Deltas, XM Investment Research Desk

Silver prices came close to breaking the 14.90 level on Friday, finishing the day slightly above the 200-day simple moving average (SMA).

According to the RSI, the market could maintain positive momentum in the short-term as the indicator is positively sloped marginally above its neutral threshold of 50, though the stochastic is creating a bullish cross within the %K and %D lines.

On the upside, the price could attempt to hit the 15.55 resistance level, which if successfully broken the door could open for the downtrend line of the descending channel around 15.65. Should traders continue to buy the commodity above that level, shifting the long-term bearish outlook to bullish, resistance could then run towards the 16.17 area, identified by the peak on February 20.

A reversal to the downside, however, could find immediate support at the 14.90 level around the 50- and 200-SMAs. If the latter fails to halt bearish movements, the next target could be the 14.63 zone, identified by the recent lows.

Turning to the long-term trading, the outlook is bearish over the past more than two years as the price has been hovering within a descending triangle formation.

commodities silver

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