Prices climb a wall of worries and I would not be surprised if the price of silver should retreat to test supports before moving higher. For now, the momentum oscillator shows strength. The RSI bounced off the 50% line which acted as support. The RSI, still rising, is now approaching the overbought region. The MACD has crossed into positive territory and is still rising. Momentum is positive.
These are signs that market bulls need to confidently add to their positions. They could buy in if price should pull back to support next. Immediate support is in the region of US$38 an ounce while stronger support is found at US$36 an ounce which is where we find the former resistance provided by the 50dMA.
Bears would be watching the region of US$40 an ounce closely. If price is unable to go higher than US$40 an ounce over a prolonged period, we could see another round of selling. Breaking US$40 an ounce would be great news for bulls.
No comments:
Post a Comment