Silver surged on Wednesday, after it hit support near the 16.73 level. The metal continues to trade above the short-term uptrend line taken from the low of the 5th of April, but it is also trading within a sideways range, between 16.20 and 16.87 since mid-February.
Having that in mind, we would like to see a decisive move above 16.87 before we get confident on more upside extensions. Currently, the price is testing that hurdle, and if the bulls prove strong enough to overcome it, then we may see them targeting our next resistance zone of 17.00, defined by the peak of the 6th of February and the inside swing low of the 1st of the month.
Looking at our short-term oscillators, we see that the RSI edged north after it hit support near its 50 level and its respective upside support line, while the MACD lies above both its zero and trigger lines, pointing up as well. These indicators reveal upside momentum and support the case for a break above 16.87.
On the downside, if the bears manage to take charge near the key resistance zone of 16.87, then we could see a retreat back towards 16.73. However, a break below that support and the aforementioned short-term uptrend line is needed before we start examining the case of a near-term trend reversal. Such a dip could initially set the stage for our next support of 16.60.
