The minor ascending channel within the main upside channel continues to control silver’s short term trend especially after the support level held against the last downside move.
This support resides at 17.60 the 100 Days MA in addition to the positive signs on Stochastic; those factors are expected to help push the metal to the upside in an attempt to reaching the first main target at 20.10, the resistance for the short term ascending channel.
We expect Stochastic to enter overbought areas and therefore a downside correction is likely for the metal to retest the horizontal resistance at 18.85 before resuming the short term upside move.
Therefore, we expect the bullishness to continue over short and medium term basis targeting 20.10 then the historic high at 21.35 where the short term trend requires 17.60 to remain intact, while the medium term trend remains valid as far as trading is above 16.20.
By: Yasir Mubarak
Main Technical Analyst