- Silver bulls roar back; make efforts to resume long-term uptrend above 32.49
- Price hovers near overbought zone; trend signals remain encouraging above 31.50
Silver made a comeback on Thursday after a temporary pause, with scope to challenge May’s eleven-year high of 32.49, which it didn’t reach in July.
The rebound near the broken resistance line at 30.60 indicated a bullish trend reversal recently, and although the RSI and stochastic oscillator are near overbought levels, they haven’t peaked yet, reflecting persisting buying interest. Note that the MACD is also on the rise above its red signal line and beneath its April-May peak area.
A breakthrough above 32.49 could propel the bulls towards the psychological level of 34.00 and the critical resistance line from December 2022 at 34.50. Crawling above 35.00, the price may next target the 61.8% Fibonacci level of the 2011-2016 downtrend at 35.80.
A pullback below 31.50 may stall instantly near the former resistance trendline at 30.60. The 20- and 50-day simple moving averages (SMAs) could next come to the rescue at 29.90 and 29.00 respectively. If not, the decline could continue towards the tentative 2024 support trendline at 27.90. and the 200-day SMA at 27.12.
To recap, silver is making a push towards its May peak of 32.49, having already eliminated half of the downtrend it experienced between 2011 and 2016. A successful penetration higher could unleash a new bullish wave to 34.00-34.50.
