Silver advanced fiercely from July 9, towards a thirteen-month high of 16.635 and currently stands at a temporary stall, while buyers try to regain the reins in the short-term.
Price is way over the Ichimoku cloud, and its Tenkan-sen average points north confirming the positive bias, whereas the Kijun-sen indicates the present stall. The 50-day simple moving average (SMA) has just crossed above the 200-day SMA. The MACD has soared above its trigger in the positive region, whereas the RSI trades in the overbought area. The ADX exhibits a very strong trend, and all the above are signaling the bullish bias.
Keeping the climb, a possible short-term pullback to congested support areas around 16.20 – 16.08 would need to hold, before a revisit to eliminate the newly formed thirteen-month high of 16.635. Next, the highs of 17.30 – 17.34 observed back in June 14 and April 19 of last year could be seen.
Downwards, a hold at resistance of 16.57 would tumble the price to test the area of congested supports, before the 38.2% Fibonacci retracement level of the up move from 14.28 to 16.635, of 15.73 can unfold. A tackle through support of 15.55 and Fibonacci levels could see the long-term SMAs become the next barrier before the support of 14.88.
Overall, short- to medium-term bullish bias is prevailing, and only a close below the 14.88 support could turn the bias neutral to negative.
