silver prices are currently on an upward trajectory, trading around $33.00 per troy ounce and marking the fourth consecutive day of gains. This move is indicative of a strengthening bullish trend that has emerged on the charts, particularly evident in the ongoing formation of an ascending channel pattern. The 14-day Relative Strength Index (RSI) has moved past the pivotal 50 level, suggesting robust upward momentum for the precious metal.
Technically speaking, silver appears poised to retest its six-week peak of $33.69, a level last achieved on April 24. Achieving this milestone could entice additional buyers, further supporting the price and potentially propelling it toward the seven-month high of $34.59, last seen on March 28. Current market sentiment favors a move to the upside, particularly given that silver has recently surpassed both the nine-day and 50-day Exponential Moving Averages, which bolsters its short-term bullish outlook.
On the downside, initial support is positioned at the nine-day EMA, currently located at $32.71, followed closely by the 50-day EMA at $32.50. Should the price break below these levels, it may signal a weakening of the bullish momentum and expose the market to further selling pressure. In such a scenario, silver could potentially test the significant support of $28.00, an eight-month low reached on April 7.
As the market continues to evolve, traders and investors will closely monitor these key resistance and support levels to gauge the overall sentiment and potential price action for silver in the coming sessions. The interplay of supply and demand dynamics, coupled with broader market trends, will likely influence the future direction of silver prices.
