Silver is currently pushing against fairly neutral 100 and 50-period Simple Moving Averages (SMAs), after buy interest rose around the 200-period SMA at 27.15, just below the band. lower of the bullish channel. The 200-period SMA strengthened the bullish defenses, strengthening the lower border of the bullish channel.

The negative momentum has subsided to a good extent, which is also reflected in the Ichimoku lines, as short-term oscillators show an increasing pace of bullish commodity sentiment. Although the MACD is below its red trigger line, it looks set to rise above it towards the zero mark. The RSI also breaks the 50 threshold as the positively charged Stochastic Oscillator favors further gains in the price of the commodity.

If the buyers manage to push the price above the cloud and the resistance band, which has formed between the 100 and 50 period SMAs, the price could quickly test the higher near 28.22. If further efforts succeed in reclaiming the area above the resistance cap of 28.55-28.73, the bulls could gain the upper hand and move towards the high of 29.29, identified in early February and adjacent to the upper channel barrier.

On the downside, initial support could come from section 27.01-27.24, which straddles the lower channel bound and the 200 period SMA. A decisive breakout of this durable zone could plunge the price to challenge the lows of 26.80 and 26.70, respectively. Snowballing past these obstacles could then reinforce the negative pressures encouraging sellers to try to walk through the buffer zone 26.07-26.31.

In conclusion, silver managed to avoid further loss of ground with the help of the 200 period SMA and the lower diagonal of the channel. If the price adheres to the pattern, the bullish bias of the metal may gradually take over the lead.



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Al Worden

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