Two-month-old resistance line lures the bulls above $18.00

  • Silver prices take the bids near 13-week top.
  • Sustained trading above 200-day SMA keeps the buyer hopeful amid bullish MACD.
  • Overbought RSI also questions the optimists below a nine-month-old resistance line.

Silver nears the highest since February 27 while taking the bids around $18.08, intraday high of $18.13, up 1.2% on a day, during Monday’s Asian session.

Although overbought RSI conditions seem to probe the bulls, upbeat MACD and the bullion’s ability to remain beyond 200-day SMA speak louder of its strength.

As a result, an upward sloping trend line from April 07, at $18.32, lures the buyers, for now. However, failures to step back from the short-term resistance-line could propel the quote further towards a descending trend line from the early-September 2019, currently around $18.55.

Meanwhile, May 20 top near $17.63 could entertain the sellers during the pullback before a 200-day SMA level of $16.97.

Additionally, 61.8% Fibonacci retracement of the metal’s fall from September 2019 to March 2020, at $16.60, could challenge the bears afterward.

Silver daily chart

Trend: Bullish