Silver traded lower yesterday but hit support near 14.52 and today it rebounded somewhat. The white metal continues to trade above the prior downtrend line taken from the peak of the 14th of June, as well as above the short-term uptrend line drawn from the low of the 11th of September. The price is also trading above all three of our moving averages. Thus, having these technical signs in mind, we would consider the near-term outlook of this metal to be somewhat positive.
If the bulls are willing to stay in the driver’s seat today, we would expect them to aim for the 14.76 level, marked by yesterday’s peak. If they manage to overcome it, then we could see them targeting the 14.90 area, defined by Tuesday’s high. Another break above 14.90 could set the stage for the psychological figure of 15.00.
Taking a look at our short-term oscillators, we see that the RSI has turned slightly up from near its 50 line, while the MACD, even though below its trigger line, shows signs that it could start bottoming from fractionally above zero. These indicators support somewhat the notion for the metal to recover a bit more.
On the downside, we would like to see a clear and decisive dip below 14.37 before we start examining whether the bears have taken the upper hand. Such a break could confirm the break of the aforementioned short-term uptrend line and may initially pave the way towards the 14.17 hurdle, defined by the low of the 27th of September. Another move below that support could carry more bearish extensions, perhaps towards the 14.00 key support zone.
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