Silver propelled above the 28.46 high, securing the recently acquired ground from the 26.50 mark. Reinforcing this move is the intact bullish bearing of the Ichimoku lines.
Looking at the short-term oscillators, positive momentum looks to be on track despite the recent reflected weakness in price. The MACD, in the positive section, is above its red trigger line, while the RSI has dipped slightly below the 70 level. Additionally, the stochastic lines have yet to confirm a bearish shift in the price. Worth mentioning is a completed bullish crossover of the 100-period simple moving average (SMA) by the 50-period one, which could boost the positive picture.
If buying interest intensifies, the commodity may encounter initial heavy resistance from the 29.40 critical high, identified on August 10. Overcoming this border, the price may challenge the all-time high of 29.835 achieved on August 7 of this year. In the event silver sails into uncharted waters, the commodity may target the 31.35 barrier, that being the 123.6% Fibonacci extension of the down leg from 29.835 to 23.42.
Otherwise, if sellers steer back down, support may originate from the nearby region of 28.35 – 28.46 ahead of the red Tenkan-sen line at 28.23 and the low of 28.03. Retracing further, the 27.56 barrier coupled with the blue Kijun-sen line, could prevent the price from meeting the bullish cross around 27.12, presently located at the cloud’s upper surface. Diving under the cloud, traders’ attention may turn towards the 26.50 and 26.03 troughs.
Overall, regardless of the slight weakening observed, silver maintains its short-term neutral-to-bullish bias above the SMAs and more importantly above the 28.35 – 28.46 section and the 28.03 low.
