Silver continues to trade steadily within the medium term ascending channel shown over daily basis below; within this channel a minor ascending channel is organizing the movement over short term basis, where silver recently reached it support level at 17.20 which resides with the 50% Fibonacci correction for the last upside wave.
Silver In Depth
We can find a continuation bullish pattern under formation with the proposed neckline at 19.90, and after the support level for the ascending channel and the 50% correction held steady against the bearishness we favor the continuation for the upside move towards the neckline reaching the first target around 20.70, the resistance for the minor ascending channel.
Some fluctuation and volatility are expected to retest the neckline awaited to be breached and then resuming the upside move over short and medium term basis targeting areas above 22.00.
The bullish scenario remains valid as far as trading is above 16.60.
By: Yasir Mubarak
Main Technical Analyst
[email protected]
www.ecpulse.com