Silver traded near $57.76 on Friday, holding a weekly gain of around 3.4% even after a 3.4% decline the day before. The metal must close above its 100-EMA band and reclaim $60 before the rebound counts as more than a tentative bounce.
Silver traded near $57.76 on Friday, holding a weekly gain of around 3.4% even after a 3.4% decline on Thursday. The recovery remains tentative, and the immediate test is whether buyers can reclaim $60, the top of its 100-EMA band.
Since mid-May, silver has repeatedly struggled beneath its four-hour 100-EMA band, which sits at half a standard deviation and has acted as dynamic resistance during the decline. A sustained move above $60 would improve the short-term structure. Until then, the move remains a possible reversal rather than a confirmed bullish breakout.
Buyers have bounced silver from the area around its June low, while stochastic RSI momentum appears stretched after the recent sell-off. But being oversold does not mean the decline has ended. The metal still needs to close above the EMA band and reclaim $60 before the bounce becomes technically more convincing.
A close above $60 would open the way toward the $61.50 to $64.00 resistance zone. A break and hold above $64 would provide stronger evidence that buyers have regained control. It would also complete the neckline break required for a potential double-bottom pattern.
That would bring $71 into view as the approximate measured-move target, with $68 acting as another resistance. The setup would weaken if silver falls back through its June low.
Source: Investing.com
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