Commodities

Technical Analysis – Silver retests 50-day SMA as trend optimism rises

Posted on May 7, 2020 at 2:06 pm GMT

Christina Parthenidou, XM Investment Research Desk

Silver is struggling to claim the 50-day simple moving average (SMA) but the bullish cross between that line and the 20-day SMA, although weak, is currently somewhat promising of an uptrend resumption.

In order to attract buying interest and challenge its recent peak of 15.82, the metal should close above its short-term SMAs and specifically above 15.30, where the upper surface of the Ichimoku cloud lies. Then, if it manages to build gains above 15.82, traders could look for resistance within the 16.20-16.50 key resistance area, while higher the 200-day SMA could be the next target.

Otherwise if the 50-day SMA hardens, blocking the way up, the focus will turn back to the 14.50-14.70 restrictive region, which could prove more harmful if it gets violated as there is no important obstacle on the way down until 13.80.

Regarding the medium-term picture, it remains negative as the price continues to trade below 16.50.

In brief, Silver is facing positive trend signals, with traders awaiting a confirmation above 15.30.

silver

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