Silver traded lower yesterday and today after it hit and confirmed support at 23.00. The metal remains above the prior downside resistance line taken from the high of June, and now, following yesterday’s rebound, we can draw a new short-term uptrend line taken from the low of September 29th. In this perspective, this keeps the short-term bias positive.
The traders believe that the buyers will stay interested and perhaps rechallenge the 24.87 zones soon, which is marked as resistance by the high of September 3rd and lies slightly above the peak of October 22nd. A break higher would confirm a forthcoming higher high and could open the path towards the high at 226.60. If neither territory is able to halt the advance, then a break higher could see scope for extensions towards the high of June 11th, at 28.24.
In order to start examining the bearish case, the traders would like to see a dip below 22.00. This will not only confirm silver’s return below both the aforementioned diagonal lines but also a forthcoming lower low on the weekly chart. The bears may then get encouraged to push the battle down to the 19.48 area, marked by the inside swing, the break of which could allow extensions towards the lows at around 18.42.
Looking at our daily oscillators, we see that the RSI rebounded from near its 50 lines, while the MACD, although below its trigger line, shows signs of bottoming within its positive territory. Both indicators suggest that the white metal has started gaining upside speed again, which supports the case for some more buying in the near term.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
The traders believe that the buyers will stay interested and perhaps rechallenge the 24.87 zones soon, which is marked as resistance by the high of September 3rd and lies slightly above the peak of October 22nd. A break higher would confirm a forthcoming higher high and could open the path towards the high at 226.60. If neither territory is able to halt the advance, then a break higher could see scope for extensions towards the high of June 11th, at 28.24.
In order to start examining the bearish case, the traders would like to see a dip below 22.00. This will not only confirm silver’s return below both the aforementioned diagonal lines but also a forthcoming lower low on the weekly chart. The bears may then get encouraged to push the battle down to the 19.48 area, marked by the inside swing, the break of which could allow extensions towards the lows at around 18.42.
Looking at our daily oscillators, we see that the RSI rebounded from near its 50 lines, while the MACD, although below its trigger line, shows signs of bottoming within its positive territory. Both indicators suggest that the white metal has started gaining upside speed again, which supports the case for some more buying in the near term.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.