- Silver lacks a clear directional bias, as the three-day lag movement pauses.
- The RSI remains above the midline, but a bearish cross on the daily chart warrants caution.
- A drop towards the key support at $ 25.25 cannot be ruled out.
Failing to find acceptance above the 50-day moving average at $ 26.06, silver bears (XAG / USD) struggled to regain control on Monday.
The white metal snaps a three-day winning streak and remains trapped within a narrow range between the 50- and 100-day SMA barrier amid mixed technical signals. Support for the 100-day SMA is at $ 25.82.
On the one hand, the 14-day RSI maintains its range above the midline, currently at the 54 level, which suggests that the bullish bias remains intact.
Meanwhile, a bearish cross detected in that time frame last week points to a possible decline. The bearish crossover was confirmed after the 21 SMA crossed the 200 SMA to the downside.
Therefore, if the selling pressure intensifies, the support at the 100 SMA could be put at risk once again, opening doors towards the confluence of the 21 and 200 SMAs around $ 25.25.
On the other hand, a daily close above the 50-day SMA is needed to nullify the downward pressures and prompt the XAG bulls to target the March 18 high of $ 26.64.
Silver daily chart
Silver additional levels
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