Silver: Stronger momentum.

The price of silver has strengthened somewhat, closing at US$36.54 an ounce in the last session. How it performs in the next session is crucial in determining its direction in the near future. How so?

US$36.54 is where we find the 50dMA which has turned down and is declining. This MA is likely to exert some downward pressure on price.

Momentum has strengthened as the RSI broke 50% which often acts as resistance or support. The MACD although still in negative territory has also turned up and is rising towards zero.

Failure to overcome resistance and in moving higher could see the 200dMA tested as support in time. This is currently at US$32.01 an ounce.