Silver bounced off minor support at $31.84 in early Asian trade on Monday, indicating the level may be useful for traders eyeing a potential bullish setup.
Longs could be established above the level with a tight stop beneath to protect against reversal. Overhead, former uptrend support currently intersects with the key 50-day moving average around $32.50, making that a potential initial target. A break above would bring $32.73 into play, a level that acted as both support and resistance during March.
The momentum picture has become more palatable for bulls, with RSI (14) trending higher and back near neutral. MACD remains in negative territory and is yet to cross the signal, though it’s starting to curl higher, suggesting bearish momentum is ebbing.
If silver reverses and breaks $31.84, the setup would be invalidated, opening the door to trades targeting a partial retracement of the recent bounce.
Good luck!
DS
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.