The technical picture of silver on our 4-hour chart shows that, yesterday, the commodity had a decent move to the upside, which resulted in a break of a short-term tentative downside resistance line drawn from the high of March 8th. At the same time, the price is now seen trading above all of its EMAs, suggesting that further advances could be possible. However, in order to get a bit more comfortable with the idea of aiming higher, we would first prefer to wait for a break above the 25.40 barrier, marked by the inside swing low of March 11th.
If that move happens and the precious metal jumps and stays above the 25.40 barrier, that may attract more buyers into the game, possibly clearing the way towards the 26.05 zone, marked by the high of March 10th, where a temporary hold-up might occur. That said, if the bulls remain strong, they could overcome that zone and aim for the 26.44 obstacle, or even for the 26.76 area, which is the high of March 9th.
The RSI and the MACD are both pointing higher. In addition to that, the RSI is above 50 and the MACD, despite sitting slightly below zero, continues to run above the signal line. The two oscillators show positive price momentum, which supports the idea, discussed above.
Alternatively, if silver drops and moves below the 24.45 hurdle, marked by the current lowest point of March, that will confirm a forthcoming lower low, potentially inviting more sellers into the game. At the same time, the price would be placed below all of the EMAs, meaning that we could see more bears joining in. Silver may fall to the 23.83 obstacle, or to the 23.41 zone, which is the low of February 17th. If that zone doesn’t break the fall, the next possible target might be at 23.06, marked by the low of February 15th.
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