Although oversold RSI joined 50% Fibonacci retracement (Fibo.) of September-November upside to challenge the silver bears during the early week, a sustained trading below the 200-SMA and a two-month-old support line hints at the commodity’s weakness. The failure to cross the previous support convergence, now resistance around $24.00, joins bearish MACD signals to direct the bright metal towards a seven-week-old horizontal area surrounding $23.00. However, any further downside will make the quote vulnerable to mark a plunge towards 78.6% Fibo. level near $22.20.
On the contrary, a clear run-up beyond the support-turned-resistance near $24.00 should fuel the bids targeting a confluence of October 25-26 swing high and November 19 swing low close to $24.60. During the silver bull’s dominance past $24.60, the $25.00 threshold may act as an intermediate halt before challenging the monthly peak, also the highest since August, surrounding $25.40. To sum up, silver buyers have a long way to retake controls.