Silver Will Likely Bounce off from 16.47

Silver has been gradually moving to the upside for the past three weeks and although the precious metal found some resistance at 16.90 and bounced off from that level it appears that the move to the upside may not be over yet. Silver formed several whipsaws for the past day and as a consequence it formed a pair of very telling candlesticks on the four-hour time-frame – namely an inverted hammer candlestick and a hammer candlestick, as well as a pair of doji candlesticks between them, all above the support at 16.47, which coincides with the (MA)89 indicator on the four-hour time-frame. Considering those candlesticks there will likely be a new rally towards the resistance at 16.90 and if the precious metal breaks out above that level it could reach 17.15, which is the same (MA)89 indicator, but on the weekly time-frame.