Silver has not had a clear tendency since June 2016 as the price has been trading in a broad descending triangle with the downtrend line starting from the $21.10 resistance level and forming a significant support barrier near $15.60. In the short term, prices have moved to the lower level of the triangle, though they have firmed up this week.
The price has made a recovery to the upside, following the bounce from the $15.60 barrier. But, XAGUSD is still developing beneath the $16.31 resistance level and if the price successfully surpasses it, it could open the door for the 50-simple moving average (SMA) at $16.65, in the daily timeframe.
An alternative scenario is a penetration of the critical level at $15.60, which could drive the price towards the $14.70 and $14.30 obstacles which stand since March 2016.
Technical indicators are pointing to more consolidation in the short to medium-term, as the RSI is flat and is near the 50 level, while the 50,100 and 200-day SMAs are moving sideways with a slight slope to the downside. On the other hand, the MACD oscillator is rising above its trigger line but remains in the bearish territory.
