Silver gapped higher, spiking above the 26.56 resistance today, continuing the recent traction the commodity found off the 100-day simple moving average (SMA). The climbing 200-day SMA is defending the positive structure, while the flattening 100-day SMA, is endorsing waning in the commodity’s improvement.
Nonetheless, the slight upturn in the 50-day SMA together with the pickup in positive sentiment in the short-term oscillators are promoting additional advances. The MACD, in the positive region, is holding above its red trigger line, while the RSI is strengthening in the bullish section, towards the 70 mark. Likewise, the stochastic oscillator has shifted positive with its %K line overlap, suggesting more appreciation in price.
If buyers manage to maintain the current trajectory, immediate upside constraints may commence from the 26.56 barrier ahead of the resistance belt of 27.40-27.61. Decisively clearing this ceiling, the commodity could turn its focus towards the 28.89 peak of September 1. Overrunning this barrier too, the bulls may then propel for the 29.40 border and the nearby 7½-year top of 29.84.
If sellers retake the wheel and drive the price down, filling the gap around 25.91, the next hardened support may develop from the 100-day SMA at 25.06 until the 24.86 inside swing high. Managing to slide under this tough barrier, the price may meet the 50-day SMA at 24.40 before challenging the region of lows of 23.51-23.81. Another successful leg down could then hit the 22.57 boundary before traders eye shifts towards the foundation of the troughs.
In conclusion, silver’s positive structure remains intact above the SMAs and the 21.66-21.88 base. Yet, a clear break above 27.61 or below 24.86 would trigger the next price course in the commodity.
