On Thursday, June 20th, spot silver surged more than 3% to close near $30.70 per ounce. FXStreet analyst Christian Borjon Valencia has written a new article analyzing the technical prospects for silver prices.

Valencia pointed out that despite rising US bond yields and a stronger dollar, silver prices still rose more than 3% on Thursday. Technical prospects show a bullish tendency, with momentum favorable to buyers.

Spot silver closed up 3.28% on Thursday, at $30.72 per ounce.

Valencia wrote that silver is still biased towards a bullish outlook. After six days of consolidation between $28.60 and $29.80 per ounce, silver finally broke through the range top and surpassed the $30 per ounce level.

With the relative strength index (RSI) near the neutral line at 50, momentum is turning in favor of buyers.

Valencia said that as silver resumes its upward trend, the next resistance level will be the high point of June 7th at $31.54 per ounce. Once it breaks through this level, the next target will be $32.00 per ounce, followed by the high point of the year so far at $32.51 per ounce.

(Spot silver daily chart source: FXStreet)

On the other hand, Valencia added that if sellers drag spot silver prices below the 50-day moving average (DMA) of $29.09 per ounce, they will target $29.00 per ounce. If this level is breached, silver may drop to the low point of $28.66 per ounce and then fall to the 100-day moving average of $26.60 per ounce.

At 08:10 Beijing time, spot silver was quoted at $30.78 per ounce.