- Consolidation is in play while the price of silver consolidates an extreme rally.
- Monthly, daily and 4HR charts offer a bullish outlook.
- Hourly Momentum divergence and break and retest of the trendline is bearish for the hourly chart.
The price rally of silver has been impressive, relishing in the macro tailwinds that have been there for some time.
Silver is also gaining a boost for its industrial qualities.
In the following analysis, it is evident that the price is now in highly bullish territory, but a phase of consolidation is now the most likely scenario, for the near term at least.
Monthly chart: Bull rally
4HR bulls holding above new support structure/Fib confluence
Hourly resistance, bearish Momentum divergence
The break and retest of the trendline leave a short-term bearish bias, supported by the divergence in the Momentum indicator and recent highs.
