Over daily basis, silver is trading within the main ascending channel the organized the wave from around 26.40 areas.
Silver recently reached the resistance for the channel and rebounded lower to middle grounds settling for this correction.
This decline was followed with an upside reversal helped the positive pattern that was completed with the breach of the neckline at 40.75 shown on the secondary four-hour chart.
The pattern supporting the upside move with the positive sign on Stochastic that supported the upside move.
The SMA 50 supports overall trading within the main ascending channel and targets are mainly at 42.85-43.00, the resistance for the ascending channel.
Meanwhile, breaching 39.70 will open the path towards the support for the ascending channel at 38.40 and breaching this level turns the downside correction to a new temporary downside short term trend.
We will keep updating our outlook on silver in a timely manner as it trades around critical levels.