From around the beginning of October, silver continues to slowly grind higher, while trading above a short-term tentative upside support line taken from the low of October 6th. However, from around the 10th of November, the price is stuck inside a triangle pattern, meaning that the commodity is coiling up. Although the prevailing trend has been to the upside, we shall wait for a violation of the upper side of the triangle first, before aiming higher.
If, eventually, the upper side of the aforementioned triangle breaks and the price jumps above yesterday’s high, at 25.19, this may attract a few more buyers, as such a move could signal a continuation of the current uptrend. Silver might travel to the current highest point of November, at 25.39, a break of which would place the precious metal into the uncharted territory. The next possible target may be at 25.99, which is the highest point of August.
The RSI and the MACD are both flat at the moment. The RSI continues to oscillate around 50 and the MACD is above zero, but remains slightly below the trigger line. The lack of directional movement supports the idea of waiting for a breakout through one of the sides of the triangle first.
Alternatively, if the price breaks the lower side of the previously discussed triangle and then falls below the 24.75 zone, marked by the low of November 16th, that might bring more sellers into the game and push the commodity for a larger correction lower. Silver may then drift to the 24.50 obstacle, a break of which could lead to the 24.01 territory, marked near the lows of November 9th and 10th.
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