Silver Technical OutLook

Although silver is approaching overbought territory where the risk of a corrective setback becomes more acute, as yet, there is no evidence of waning upside momentum following this week's break of trend-line resistance originating from May at 12.299.

Accordingly, we anticipate further upside towards 13.250, the reaction high from Sep 5. A break of this level would expose 13.390, May 30 corrective peak, but with scope longer-term for an extension towards 13.878, the 76.4% retracement of the 15.240 to 9.470 advance.

Near-term support resides at Thursday's 12.350 low, but minimally it would take a relapse below 11.965, the floor from Oct 31 to jeopardise the ongoing bullish theme.

Retain a positive bias for now, expecting a move towards 13.250. Weakness below 12.350 would be necessary to threaten the immediate up-trend, with a loss of 11.965 required to undermine it.