FUNDAMENTALOVERVIEWSilver has been diverging with gold recently as it’s been rallying steadilysince last week. They are generally correlated but can decouple sometimes. Silveris also much more volatile, so it might just be exacerbating the boost fromfalling real yields. The fundamentals haven’t changed. We still have the US and Iran in adeadlock. We still have high inflation and oil prices. And we still have theFed slowly turning more hawkish. Traders will need to focus on the Fed going forward as new all-time highsare unlikely to come without an easing bias from the central bank. If nothingchanges before the June meeting, we might be in for a hawkish surprise asinflation continues to run hot and the US data remains resilient. In that case,we can expect a selloff in silver and potentially new lows.In the short-term, a resolution and the reopening of the Strait will likelysupport silver on falling oil prices and increased rate cut bets as inflationworries would ease. But if the Strait remains closed for longer and oil pricesstay elevated, the risk of the Fed turning hawkish anyway increases.SILVER TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that silver has been rallying steadily for more than a week now, with theprice approaching the key 96.00 handle. If it gets there, we can expect thesellers to step in with a defined risk above the level to position for a dropback into the major trendline. The buyers, on the other hand, will look for abreak to increase the bullish bets into the cycle highs.SILVER TECHNICAL ANALYSIS –4 HOUR TIMEFRAMEOn the 4 hour chart, we havean upward trendline defining the bullish momentum. The buyers will likelycontinue to lean on the trendline with a defined risk below it to keep pushinginto the 96.00 level. The sellers, on the other hand, will look for a break topile in for a pullback into the 83.00 support. SILVER TECHNICAL ANALYSIS –1 HOUR TIMEFRAMEOn the 1 hour chart, wehave a minor counter-trendline defining the pullback into the upward trendline.The sellers will likely continue to lean on it with a defined risk above it tokeep pushing for a break below the upward trendline. The buyers, on the other hand,will look for a break above the downward trendline to increase the bullish betsinto new highs. The red lines define the average daily range for today. UPCOMING CATALYSTSToday we get the US Retail Sales report and the latest US Jobless Claimsfigures. This article was written by Giuseppe Dellamotta at investinglive.com.