silver continues to draw increased buying interest, remaining near a multi-year high established earlier this week. Technical analyses reveal the formation of an upward-sloping channel, indicative of a sustained short-term bullish trend. Despite this positive momentum, the daily Relative Strength Index remains above the overbought threshold, suggesting that traders should exercise caution when considering long positions.
Over the past two weeks, silver ’s price has steadily advanced within this ascending channel, reinforcing the short-term bullish outlook. However, the persistence of overbought conditions warrants patience, as a period of consolidation or a minor correction could precede further gains. Market participants may look for a brief pullback toward key support levels before resuming the upward trajectory.
Looking ahead, there is potential for silver to extend its ascent beyond the current resistance near $48.75, the recent multi-year peak. A successful breach of this level could pave the way for prices to target the $49.00 level, with further momentum potentially pushing toward the 2011 high of approximately $49.80. If the bullish momentum intensifies, there may even be an objective to reach the psychological $50.00 level, a significant milestone not observed in over a decade.
On the downside, short-term support appears to be forming around the $48.00 level, with more immediate support zones identified near the $47.75-$47.70 range during Asian trading sessions. If selling pressure intensifies and a decisive move below this support materializes, it could signal a reversal of the current trend. Technical sellers might then target the next support levels around $47.00, with further downside potential toward the $46.65-$46.60 zone. A sustained move below these levels would confirm a breakdown of the prevailing upward channel, increasing the likelihood of a corrective pullback in silver prices.
