Silver is extending above the two-and-a-half-month high of 27.87, achieved on May 10, and appears to be eyeing the upper frontier of the bullish channel formation on the four-hour chart. The advancing simple moving averages (SMAs) are aiding the bullish structure, while the Ichimoku lines are reflecting the pickup in positive sentiment.
The short-term oscillators are indicating that bullish momentum is increasing. The MACD is beyond the zero threshold and is strengthening above its red trigger line, while the RSI is heading towards the 70 overbought level. The stochastic oscillator has reclaimed its positive charge and is endorsing additional gains in the commodity.
To the upside, initial resistance could arise from the tough section of 28.18-28.32, linked to highs from around the end of February and the upper boundary of the bullish channel. Should the uptrend endure, the price may target the 28.72 high, identified on February 2.
If sellers manage to take control, early support could occur at the 27.87 level (previous resistance-now-support). Diving from here, next downside limitations could evolve from the red Tenkan-sen line at 27.41 until the 50-period SMA at 27.23. A deeper retracement could then challenge the lower barrier of the channel ahead of the troughs of 26.80 and 26.70 respectively.
Summarizing, silver’s bullish bearing seems to be adhering to the bullish channel. A break beneath the channel’s lower band and the 26.70 trough could strengthen negative tendencies to sink the price towards the zone of lows existing between 26.07-26.24.
