Silver Continues To Run Above A Short-Term Upside Line

by Darius Anucauskas
11:44, 2021/05/17

Looking at the price of silver on our daily chart, we can see the commodity continues to climb higher, while trading above a short-term upside support line taken from the low of March 31^st. After a small correction lower at the end of last week, silver is now moving back up and it is close to last week’s high, at 27.850. In order to get comfortable with further advances, a break of the 27.850 barrier would be needed.

If, eventually, the price pops and stays above the 27.850 hurdle, this will confirm a forthcoming higher high, potentially clearing the path towards higher areas. More bulls might join in and push silver towards the 26.310 obstacle, a break of which may set the stage for a move to the 28.867 level. That level is marked by the high of February 2^nd.

The RSI and the MACD are both pointing higher. In addition to that, the RSI is above 50 and the MACD remains above zero and its trigger line. The two oscillators indicate positive price momentum, which supports the idea discussed above.

Alternatively, if silver breaks the aforementioned upside line and falls below the 26.702 zone, marked by the low of last week, that could spook the bulls from the field, potentially inviting more bears. The price might then drift to the 26.086 hurdle, marked by the low of May 5^th, a break of which could open the door to the 25.694 level, which is the low of April 29^th.

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