Challenging the resistance of $32.45, still positive on the weekly

Taking a look at silver as it seems to have reached a resistance point. Currently, the commodity is trading at around $31.80 an ounce. We can see that the resistance level of $32.45 has been tested, with the price reaching a price level of $32.50, but has been rejected. As a result, it has retraced. The weekly candlestick remains positive for the time being, suggesting that buying pressure is still moderately strong. If the resistance continues to overpower the momentum we may see a pullback in the price of silver. The near-term support is this week’s low of $30.92. A break below this level could lead to a further decline towards the area of $28.70-$29.80. On the upside, if a break above the resistance occurs, we may see a push in the medium term towards the next resistance point of $34.38. Consolidation within the area channel above post a break of $32.45 would provide greater confidence for further bullishness. The technical indicators continue supporting the bullish bias, the MACD is still rising and the RSI reads 73. Although the RSI has now entered the overbought territory, We can see that when this happened in April some profit-taking took place. Hence, some caution should be taken with anticipation of more profit-taking before any potential moves higher.