SILVER has recently tested the $20.80 level more than a couple of times, but every time sellers take it towards the mentioned level buyers to push it back up. Currently, SILVER is trading higher after testing the support area. It is important to note that despite impressive economic released in the US the prices of white metal are holding support levels. This is sometimes a bullish sign, but we cannot deny the fact that SILVER is under bearish pressure, and sooner or later it might fall towards the $20.00 support level.

There is an important triangle forming on the hourly chart for SIVLER, which is contracting. It means that SILVER could break the recent range and either trade higher or lower. There is a cluster of resistances around the 200 and 100 hourly moving average. Not only both are converging around a same area, but the 50% fib retracement level of the last down-move from the $21.07 high to $20.75 low also sits around the same area. So, the $20.91 level could act as a strong barrier for SILVER buyers in the short term.

The hourly RSI is also below the 50 level, which adds value to the bearish view, but a short-term push cannot be denied from the current levels. It is also possible that SILVER fails to rise, and retest the triangle support trend line. In that case, it would be interesting to see whether sellers can manage to break the support or not.

As mentioned in the previous post, we have the US initial jobless claims and new home sales data lined up for release later today. The mentioned economic releases might cause swing moves in SILVER moving ahead.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com