- Silver gained strong positive traction on Thursday and broke the $ 27.00 level.
- The technical setup favors bullish traders and supports the prospects for higher profits.
- Only a sustained break below $ 26.00 will negate the short-term positive bias.
At payment it caught some aggressive offers during the early American session and rose to the highest level since February 26. The commodity was last seen trading around the $ 27.15-20 region, up around 2.5% on the day.
As the intraweek decline drew buying on dips near $ 26.00, acceptance above the 50% Fibonacci level of the $ 30.07-$ 23.78 dip could be seen as a new trigger for bull traders. A subsequent strength above $ 27.00 adds credibility to the positive outlook and could have already laid the foundation for further gains.
The constructive setup is bolstered by the fact that the technical indicators on the daily chart have been gaining positive ground and are still far from being in overbought territory. Therefore, some tracking force towards the 61.8% Fibonacci level, around the $ 27.65-70 region, en route $ 28.00, now seems like a clear possibility.
On the other hand, any significant pullback could now find decent support and be bought near the $ 26.60-50 congestion zone. This, in turn, should continue to help limit the decline near $ 26.00. The latter coincides with the 38.2% Fibonacci level, which if it breaks decisively will nullify the bullish bias and cause some technical selling.
Daily chart
Technical levels
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