Silver gained positive traction for the third consecutive session on Monday.
Any subsequent move up might confront resistance near the 38.2% Fibo. level.
Mixed technical indicators on the daily chart warrant caution for bullish traders.
Silver built the post-NFP gains and edged higher for the second consecutive session on Monday. This also marked the third day of a positive move within the previous four and pushed the bearing metal to over two-week tops, round the $26.60-65 region during the primary half the ecu session.
Given Friday’s sustained move beyond the $26.30 heavy supply zone, or the five hundred Fibonacci level of the $23.78-$28.75 move up, the momentum might be attributed to some technical buying. This may need also set the stage for an extension of the continued appreciating move amid a subdued USD demand.
Meanwhile, technical indicators on the daily chart – though are recovering from the negative territory – are yet to verify a bullish bias. Hence, any subsequent move up is more likely to confront stiff resistance and remain capped near the 38.2% Fibo. level, round the $26.85 region.