Thursday, 8 December 2016

Silver: The Force Awakens

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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