Silver extended beyond the recorded peak last May around 19.80, and by assessing the metal over weekly basis, we can see last week’s closing was exactly at this level –shown on the secondary chart below-. 
On the other hand, we can see that momentum indicators entered overbought areas which might cause volatility and a downside correctional bias for the last upside wave which started from 17.74 to current levels. The correction possibility is supported by a bearish Rising Wedge formation with the support at 19.60. Breaching this level will extend the downside correction targeting 19.10 -38.2% correction- in an attempt to unload the negative momentum before resuming the bullishness. Therefore, breaching 19.80 signals further bullishness over short term basis targeting the medium term resistance around 23.00 per ounce where daily closing below this level might take the metal towards 19.60 then extending the downside correction as aforesaid. The short term trend remains to the upside despite the expected downside correction while the 100 MA supports the medium term bullishness and protects it from below.
By: Yasir Mubarak
Senior Technical Analyst
yasir.mubarak@ecpulse.com
www.ecpulse.com