- Silver prolongs its upward trajectory and climbs to over a one-week high on Monday.
- Bulls still seem to struggle to make it through a multi-month-old descending trend line.
- Sustained break below the $18.35 area will expose the YTD low touched in September.
Silver builds on last week’s bounce from sub-$18.00 levels and gains some follow-through traction for the second successive day on Monday. This also marks the fourth day of a positive move in the previous five and lifts the white metal to over a one-week high, around mid-$19.00s during the early part of the European session.
Bulls, however, still seem to struggle to make it through a downward sloping trend-line extending from May swing high. The said barrier, around the $19.50 region, should now act as a pivotal point, which if cleared decisively will set the stage for additional gains and allow the XAG/USD to aim to reclaim the $20.00 psychological mark.
The latter coincides with the 100-day SMA, above which the XAG/USD could accelerate the move towards the $20.50 intermediate resistance en route to the $21.00 round-figure mark. Some follow-through buying should pave the way for an extension of the momentum towards the next relevant hurdle near the $21.50-$21.55 horizontal zone.
On the flip side, the $19.00 mark could act as immediate support ahead of the $18.85-$18.80 zone and the $18.35 area. Failure to defend the said support levels will shift the bias in favour of bears and make the XAG/USD vulnerable to breaking below the $18.00 mark and test the YTD low, around the $17.55 region touched in September.
Silver daily chart
Key levels to watch