- Silver prices take rounds to $19.87/93 after refreshing the highest level since September 2016.
- The resistance line of the monthly ascending channel restricts immediate upside beyond the $20.00 threshold.
- The mid-month top can act as nearby support ahead of the channel’s lower line.
- Overbought RSI conditions favor pullback from a multi-month peak.
Silver trades around $19.90 amid the initial hour of Tokyo open on Tuesday. The white metal surged to the highest since late-2016 the previous day. However, overbought RSI conditions stopped bulls from meeting the $20.00 round-figures.
Hence, the bullion may witness additional declines targeting Wednesday’s high of $19.48. However, the support line of an upward sloping channel since July 01, near $19.20, will question the metal’s further selling.
Should there be a clear downside past-$19.20, $19.00 and 200-bar SMA level of $18.13 will be in the spotlight.
Meanwhile, the mentioned channel’s resistance line adds strength to the $20.00 threshold, a break of which will enable the bulls to challenge September 2016 high of $20.13.
Additionally, August 2016 peak close to $20.80 and the all-time record of $21.14 could lure the optimists past-$20.13.
Silver four-hour chart
Trend: Pullback expected