Silver: Approaching Key Resistance

On Tuesday, spot silver rose for a second straight session, lifted by renewed optimism over U.S. stimulus measures.

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On Tuesday, spot silver rose for a second straight session, lifted by renewed optimism over U.S. stimulus measures. In the latest twist, U.S. House Speaker Nancy Pelosi said, after meeting Secretary of the Treasury Steven Mnuchin, she remains hopeful of a stimulus deal before election. During early Asian trading hours today, spot silver extended its rally by 1.1%.

On a daily chart, despite the recent technical rebound, spot silver has not yet confirmed an end to its downside price correction. It remains capped by a declining trend line drawn from August and is still trading at levels below the bottom of its previous range marked in mid-August to mid-September. The level at $25.85 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $22.87 and $21.67 respectively.

Source: Gain Capital, TradingView

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