Silver is still seen trading above a short-term upside support line drawn from the low of September 24th and also above all of its EMAs on our 4-hour chart. As long as the price stays above that line and those EMAs, the near-term outlook might remain positive.
Given that silver also popped above Monday’s high, at 24.956, this might have opened the door for a further move north. If so, the commodity may climb to current highest point of October, at 25.543, which could slowdown the acceleration. The precious metal may even retrace somewhat lower, however, if it stays above the aforementioned upside line, the buyers might enter again, in order to lift the price. If this time it is able to overcome the 25.543 barrier, the next possible resistance area could be at 26.275, which is the low of September 17th.
Although the RSI, at the time of writing, is flat, it remains above 50. The MACD, on the other hand, continues to point higher, while running above zero and its trigger line. Both indicators show positive momentum, which supports the above-mentioned scenario.
Alternatively, if the aforementioned upside line breaks and the price falls below the 24.042 zone, marked by the low of October 16th, that may spook the rest of the bulls from the arena temporarily, potentially clearing the way for more bears. Silver might then drift to the low of October 15th, at 23.556, a break of which could send the commodity to the current lowest point of October, at 22.848.
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