Silver continues trading within the main ascending channel over medium term basis since the recorded bottom at 8.48 and halted temporarily at the top mid May of 19.80. The temporary stop was for a needed downside correction for the short term bullishness which started since building the base on the support for the channel at 14.63.
As seen on the chart above, the correction did not surpass 50% Fibonacci in the first attempt and 38.2% in the second attempt as the 100 Days MA was always supporting the metal and pushing it higher. We believe that the path is open for silver to continue the main upside move especially after breaching 23.6% at 18.57 and now targeting next the recorded top at 19.80 which we expect the metal to fluctuate around it in an attempt to breach it as momentum indicators enter overbought areas and the fluctuation might be needed to upload the negativity to continue further to the upside over short term basis. Trading above 18.57 will keep the upside potential valid while the short and medium term bullishness requires steady daily closing above 17.40.
By: Yasir Mubarak
Senior Technical Analyst