Silver is currently pushing up against the fairly neutral 100- and 50-period simple moving averages (SMAs), after buying interest picked up around the 200-period SMA at 27.15, just beneath the lower band of the bullish channel. The 200-period SMA has fortified upside defences, reinforcing the lower frontier of the bullish channel.
Negative momentum has decreased by a good measure, something also being reflected in the Ichimoku lines, while the short-term oscillators are demonstrating a growing pace in the commodity’s bullish sentiment. Although the MACD is below its red trigger line, it is looking set to rise above it towards the zero mark. The RSI is also nudging past the 50 threshold, while the positively charged stochastic oscillator is promoting extra gains in the price of the commodity.
If buyers manage to drive the price over the cloud and the resistance band, which has formed between the 100- and 50-period SMAs, the price could quickly test the 28.22 nearby high. Should further efforts succeed in recapturing the area above the resistance ceiling of 28.55-28.73, the bulls may gain the upper hand and make their way towards the 29.29 high, identified at the beginning of February and adjacent to the channel’s upper barrier.
To the downside, initial support could arise from the section of 27.01-27.24, which overlaps with the channel’s lower boundary and the 200-period SMA. A decisive break of this durable zone could plunge the price to challenge the 26.80 and 26.70 lows, respectively. Snowballing past these obstacles could then strengthen negative pressures encouraging sellers to try and run down the 26.07-26.31 buffer zone.
In conclusion, silver has managed to evade further loss of ground with the assistance of the 200-period SMA and the lower diagonal line of the channel. Should the price adhere to the pattern, the metal’s bullish bias may gradually retake the lead.
Written by Admin
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