- Silver is holding firm and extending the break to the upside of the short-term resistance line and the key SMA.
- The overbought RSI may test the bulls around the horizontal area in the short term.
- The bears need to fall to the weekly low to gain conviction.
Silver remains firm, rising 0.11% intraday near $ 28.03 at the start of the European session on Wednesday. In doing so, the white metal hits a fresh one-week high as it extends the previous day’s upside breakout of the weekly resistance line, now turned into support, as well as a confluence of the 50 and 200 SMAs.
However, it should be noted that overbought conditions on the RSI test silver buyers ahead of a short-term horizontal area comprising multiple highs since May 18 around $ 28.30-25.
In a case where the bulls ignore RSI conditions and hold the reins beyond $ 28.30, the monthly high of $ 28.75 and the annual high near $ 30.00 will be in the focus of investors.
Meanwhile, retracement movements may initially be supported by the convergence of the 50 and 200 hourly SMAs near $ 27.75 before the previous resistance line, now turned into support, may test silver sellers around $ 27.60.
Also acting as an important support nearby is the weekly low of $ 27.20 and the round level of $ 27.00.
Overall, silver is still bullish, but an intermediate pullback cannot be ruled out.
Silver 1 hour chart
Silver technical levels
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