After finding support near the 21.40 hurdle and then reversing higher, silver went on to break a short-term tentative downside resistance line taken from the high of November 16th. If the precious metal continues to trade above that downside line, the commodity might get picked up by more buyers and a further move north could be possible. Hence our positive approach for now.
If more bulls see the current price of silver as a good level of entry, the precious metal could travel to the 23.01 zone, marked by the current highest point of December. Initially, the upmove might get halted around there, as the commodity may also test the 200-day EMA. If the buyers stay active, they could overcome that whole resistance zone and target the next area between the 23.30 and 23.42 levels. Those levels mark the highs of November 30th and 29th respectively.
Although the RSI is currently flat, it continues to run above 50. Unlike the RSI, the MACD is pointing higher, while sitting above zero and the trigger line. Overall, the two oscillators indicate positive price momentum, which supports the above-discussed scenario.
Alternatively, if the price falls back below the aforementioned downside line and then also drops below the 22.05 hurdle, marked by the inside swing high of December 15th, that may attract a few more sellers into the game. Silver could slide to the 21.67 obstacle, a break of which may lead to a test of the 21.40 area, which is the current lowest point of December.
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