silver prices appear poised for a potential recovery, as the latest technical analysis indicates a persistent bullish sentiment. Currently trading around $31.30 per troy ounce during Friday’s Asian market session, the precious metal has halted its recent three-day upward trajectory. However, the overall outlook remains optimistic due to the formation of an ascending channel pattern, which suggests further gains could be on the horizon.
In terms of immediate resistance, silver is approaching a two-month high of $32.28, last reached on December 9. A breakthrough at this level could provide momentum for the price to target the upper boundary of the ascending channel, estimated at $32.60. In contrast, immediate support for silver is identified at the nine-day Exponential Moving Average (EMA) of $30.82, with the 14-day EMA slightly lower at $30.66. These levels are critical, as they correspond with the ascending channel’s lower boundary.
Should the price slip below this significant support area, a shift toward a bearish momentum could emerge. Such a decline might pressure silver to revisit the four-month low of $28.74, recorded on December 19. The underlying support from the EMAs indicates that bullish momentum remains intact, bolstered by the 14-day Relative Strength Index (RSI) holding above the neutral level of 50, an additional sign of the prevailing upward sentiment.
Overall, while current market dynamics show silver consolidating its position, the outlook suggests that a rally toward higher resistance levels could materialize if bullish momentum continues to prevail in the upcoming sessions. Market participants will be closely watching these critical support and resistance levels for further trading direction.
