Silver is having one of its best trading sessions of this year, gaining strong momentum above the descending triangle that was holding since April 2017. This week the price continues to attract buying interest, with the price registering a fresh five-month high of 16.10.
The technical indicators are still located in bullish area, with the MACD stretching further above its red trigger line and the RSI moving above 70. Yet the latter could also be an indication that the rally is overdone, and hence negative corrections should not be a surprise in the coming sessions.
The 16.17 resistance level could be a trigger point for steeper bullish action, while if the price manages to break the line, immediate resistance is coming from the 50.0% Fibonacci retracement level of the downward wave from 18.63 to 13.90 near 16.25. Higher, resistance could run towards the 61.8% Fibonacci of 16.82.
However, if the pair reverses back to the downside, investors could rest near the 38.2% Fibo of 15.00, which coincides with the 200-day simple moving average (SMA) before meeting the 14.90 support area.
In brief, the market changed the negative outlook to bullish in the short-term and if there is a jump above the 61.8% Fibo, this would switch the long-term view to positive as well.