Silver has come under strong pressure over the last trading days, in the short to medium-term timeframe, following the pullback on the 17.70 resistance level. The price penetrated to the upside of the symmetrical triangle that was holding since July 2017 and ended several days above the descending trend line. However, on Monday, the price slipped again below the diagonal line.
From the technical point of view, the white metal is developing above the short-term 20 and 40 simple moving averages, and is endorsing again the scenario for further gains. The RSI indicator is pointing to the upside in the positive zone, indicating a bullish signal, whilst the MACD oscillator is losing momentum as it is moving below the trigger line.
If price action remains above 20-day SMA, could open the door for the 17.70 resistance level. This is considered to be a strong resistance area which has been rejected a few times in the past. Rising above it could see prices re-test the 18.20 peak.
If the price fails to jump higher, then the focus would shift to the downside towards 16.70, which stands near the 40-day simple moving average. This is an important level, which if breached, would increase downside pressure and the price would be on the path towards the lower band of the symmetrical triangle at 15.60.