REVIEW
Looking at the bigger picture, Silver continues to trade within a symmetrical triangle, and slowly continues to move towards the apex of that triangle. We can also notice that silver trades slightly above its 200 EMA. The line seems to act as a good magnet if the white metal gets too far from it. Last week, silver finally managed to break to the upside the 200 EMA, which continued to act as a sort of resistance area since the last time it was broken to the downside, on the 24th of April.
OUTLOOK (SCENARIO A / B)
We will stick to the upside scenario as Silver is showing some signs of strength. Currently, the bulls are testing the 16.90 resistance, but we would like to see a clear move above 17.00 before we get confident on more upside extensions. Such a break could take silver towards the crossroads of the 17.25 barrier and the upper side of the aforementioned triangle.
The RSI is above 50 and pointing higher. The MACD is above both its 0 and trigger lines. Both indicators are showing signs of strength, which could interest even more bulls to join in.
On the downside, a move back below the 200 EMA and eventually a break of the 16.60 zone could spook the bulls, who could start abandoning the precious metal. If more selling starts to kick in, then we could see a drop to 16.30 or even the lower side of the triangle.
Looking at the bigger picture, Silver continues to trade within a symmetrical triangle, and slowly continues to move towards the apex of that triangle. We can also notice that silver trades slightly above its 200 EMA. The line seems to act as a good magnet if the white metal gets too far from it. Last week, silver finally managed to break to the upside the 200 EMA, which continued to act as a sort of resistance area since the last time it was broken to the downside, on the 24th of April.
OUTLOOK (SCENARIO A / B)
We will stick to the upside scenario as Silver is showing some signs of strength. Currently, the bulls are testing the 16.90 resistance, but we would like to see a clear move above 17.00 before we get confident on more upside extensions. Such a break could take silver towards the crossroads of the 17.25 barrier and the upper side of the aforementioned triangle.
The RSI is above 50 and pointing higher. The MACD is above both its 0 and trigger lines. Both indicators are showing signs of strength, which could interest even more bulls to join in.
On the downside, a move back below the 200 EMA and eventually a break of the 16.60 zone could spook the bulls, who could start abandoning the precious metal. If more selling starts to kick in, then we could see a drop to 16.30 or even the lower side of the triangle.