Technical Analysis: Silver consolidates biggest gains in eight weeks above key supports

Technical Analysis: Silver consolidates biggest gains in eight weeks above key supports

With the market spiral full of talks over Gamestop-led fund diversion to silver weighing on risks, the white metal trims the previous day’s gains on Friday. The commodity rose the most since early December on Thursday while extending its bounce off 100-day SMA beyond 21-day SMA. The upside move also gained support from bullish MACD and upbeat RSI. Also supporting the silver buyers is the quote’s ability to keep the SMA breakout. As a result, silver is well-directed towards a falling trend line from August, around $27.60 while the monthly near $27.90 and September 2020 peak surrounding $28.90 adds to the upside filters.

On the contrary, a 21-day SMA level of $25.85 offers nearby support to the bullion before dragging it to the $25.00 threshold. However, 100-day SMA near $24.80 and an ascending support line from November 30, at $24.70 now, will become tough nuts to crack for the silver bears afterward. Overall, silver consolidates the upside momentum but the bulls can stay hopeful.

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