Silver Still Has Potential To Move Higher

by Darius Anucauskas
11:27, 2021/05/03

Silver Still Has Potential To Move Higher | Technical Analysis

The bulls continue to keep silver above all of its EMAs on our daily chart. At the same time, the commodity remains above a short-term tentative upside support line taken from the low of March 18^th. Although there are indications for a possible move further north, we would still prefer to wait for a push above the 26.63 barrier, before examining higher areas. Until then, we will take a cautiously-bullish approach.

If, eventually, the “white metal” pushes through that barrier, at 26.63, and stays above it, this will confirm a forthcoming higher high, possibly opening the door to some higher areas. The commodity might then drift to the 27.23, marked by an inside swing low of February 23^rd. If the buying continues, the next potential target could be at 28.31, which is the high of February 23^rd.

The RSI is currently above 50 and points higher. The MACD, although slightly on the flat side, is sitting above zero and just fractionally above its trigger line. The two oscillators seem t be in support of the upside idea, at least for now.

Alternatively, if the price breaks the aforementioned upside line and then falls below the 24.66 zone, marked by the low of April 13^th, that could spook the buyers from the arena for a bit. Silver may then drift to the lowest point of March, at 23.76. where a temporary hold-up could occur. That said, if the sellers are still feeling active, they might easily overcome that obstacle, this way confirming a forthcoming lower low and clearing the path towards the 22.66 level, marked by an inside swing high of November 30^th, 2020.

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