Silver accelerated like there is no tomorrow to a seven-year high of 23.00 in just two days, and after breaching a soft descending trendline and the 19.63 peak from September 2019.
The staggering move drove the RSI and Stochastics to overbought territory, hence downside corrections should not be surprising in the short-term. Still, the industrial metal managed to secure significant ground and put itself back to a positive path, Â and any pullback should be substantial in order to push the price back below the trendline.
The red Tenkan-sen line in the four-hour chart at 21.63 has been quite supportive this month and could immediately add footing to the price if the bears return. In the event it fails to do so, the 2016 highs around 20.50 and the 20.00 round number may come under the spotlight before all attention turns to 19.63. Lower, the 20-day simple moving average (SMA) at 18.85 may attempt to stabilize the selling pressure too.
Meanwhile in the one-hour chart, the market seems to be trading within a bullish pennant that has been created after the steep rally. A decisive close above that formation and the 22.30 level could see the retest of the 23.00 top. Running higher, the bulls may initially find resistance near 24.00 and then around 26.15.
Summarizing, Silver is viewed as cautiously positive in the short-term. A close above 22.30 may bring the bulls back into play, while a drop below 21.63 may add more weight on the price. Â Â
