Silver: Technical Rebound Continues

Silver is extending its technical rebound as market sentiment improved and the U.S. dollar softened...

Uptrend 2

On Monday, the three major U.S. stock indices rebounded as economic data came better than expected. The U.S. ISM Services Index climbed to 57.8 in September (56.2 expected) from 56.9 in August, indicating that the service sectors growth has accelerated. Silver, which can be used for industrial production, was lifted by improved market sentiment and a weaker dollar.

From a technical point of view, spot silver is extending its technical rebound as shown on the 1-hour chart. Previously, the RSI showed a bullish divergence and the white metal is now supported by a rising trend line drawn from its previous low. The level at $23.60 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $25.25 and $25.80 respectively.

Source: Gain Capital, TradingView

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