The price of silver is exhibiting a bullish trend within a range, currently trading at the 23.200 level. Notably, the price is positioned between the 50-day and 200-day Moving Averages, indicating a range-bound bullish bias. In Scenario 1, there is a possibility of a price decline towards the 23.070 level, and if successfully breached, further downside movement may lead to tests at the 23 and 22.961 levels. It is crucial to monitor the 22.941 level, as a break below it could establish 22.961 to 22.850 as potential support areas, with 22.850 serving as a significant bearish support zone.
On the other hand, in Scenario 2, the price could experience upward movement from the current level, potentially retesting the 23.277 level. However, resistance might be encountered at the 23.344 level. Continued upward momentum could lead to a test of the 23.394 to 23.447 level, which holds major significance.
Given the range-bound nature of the market, caution is advised. The market has the potential to fluctuate between the 22.784 and 23.447 levels. The reaction of the market at these levels will be crucial in determining its future direction. It is worth noting that the momentum for the market is currently up, with the Relative Strength Index (RSI) indicating an overbought range.
Key levels to closely monitor include 23, 23.070, 23.171, 22.850, 22.784, 22.733, 23.400, 23.447, and 22.260. These levels will provide valuable insights into the market’s behavior and serve as important reference points for traders and investors.
Overall, considering the range-bound bullish bias, traders should exercise caution and closely observe price reactions at key levels to make informed trading decisions.