Search ForexCrunch
  • Silver stays bid, extends upside break of short-term resistance line, key SMAs.
  • Overbought RSI may test the bulls around short-term horizontal area.
  • Bears need to refresh weekly bottom for conviction.

Silver remains on the front foot, up 0.34% intraday near $28.11, during early Wednesday. In doing so, the white metal jumps to the fresh one-week high while carrying the previous day’s upside break of weekly resistance line, now support, as well as a confluence of 200 and 50-HMA.

It should, however, be noted that the overbought RSI conditions test the silver buyers ahead of a short-term horizontal area comprising multiple highs marked since May 18 around $28.30-25.

In a case where the commodity bulls ignore RSI conditions and keep the reins beyond $28.30, the monthly top of $28.75 and the yearly high near $30.00 will be in focus.

Meanwhile, pullback moves will initially be challenged by the stated HMA convergence near $27.75 before the previous resistance line can test the silver sellers at around $27.60.

Also acting as the nearby important support is the weekly low of $27.20 and the $27.00 threshold.

Overall, silver remains bullish but intermediate pullback can’t be ruled out.

Silver hourly chart

Trend: Bullish