Since
the beginning of July Silver prices are sliding downwards within a bearish channel.
It is seen on the daily chart that Silver is quite avoiding to get close with
the down side of the channel and during the last week is behaving rather
bullish.
Meanwhile the 20-day, 50-day and 100-day EMAs are indicating sure bearish bias.
But RSI is slowly turning from bearish to bullish mode and now is placed around
the mid-lines. Stochastic surged from extreme oversold conditions and is aiming
north now. Both indicators support the silver bulls and are fuelling up the
rally.
The strong support at 17,00 (June and October lows) has turned into resistance,
which since yesterday is conquered by the bulls. Observing the short-term bullishness
is clearly seen and Silver most probably will test the top of the channel.
The combination of the indications of the technicals is significant and worth
attention. The force awakens and bulls are heading towards 17.20. Whether will continue
to the upside of the channel is quite early to say. One thing is sure – strong fundamentals
are needed to stir the market and set clear direction.
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