Silver has extended its breakout and is approaching the upper boundary of a steep ascending channel near $96.50–$97.00, with momentum indicators at multi-year highs despite clear signs of an overstretched trend, Société Générale's FX analysts note.
"Silver broke out of its brief consolidation earlier this week, extending its upward move. It is now approaching the upper boundary of a steeper ascending channel at $96.50/$97.00. The daily MACD has surged to multi-year highs and remains well above the equilibrium line, underscoring strong momentum but also highlights an overstretched trend."
"Notably, Silver is nearly 45% above the 50-DMA; this is a historically extreme deviation and highlights the risk of near-term consolidation or corrective action. However, no clear signs of a meaningful pullback have emerged yet. The upper part of recent range at $82.70 could serve as initial support."