Technical Analysis – Silver’s advance falters but bias remains bullish
The momentum indicators suggest that bullish forces are still in control. The stochastic oscillator is storming higher after posting a bullish crossover, while the MACD histogram is found above both zero and its red signal line. In addition, the price is trading way above the Ichimoku cloud, confirming the broader bullish short-term picture.
Should the positive momentum intensify further, the recent high of 25.61 might be the initial resistance point for the price. Failing to stop there, the bulls could aim for the 26.00 psychological mark before the spotlight turns to the 26.45 barrier. Further upside pressure could send the price to test the 26.76 hurdle.
On the flipside, if sellers re-emerge and regain the upper hand, the commodity might confront immediate support at its recent low of 24.85. Breaching this floor, the price could dip towards 23.86, a violation of which could send the price to challenge the 23.33 obstacle. Diving below this region, the 22.87 barricade may appear on the radar.
Overall, despite silver’s recent lack of strength to push higher, its short-term picture remains positive, while near-term risks are also tilted to the upside. Therefore, a break above the 25.61 ceiling could signal the continuation of its upside trajectory.
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