20 day line surfaced
Further supporting a bullish thesis is the 20-Day MA, which started rising last week and almost coincides with the internal uptrend line and the double bottom neckline. When indicators converge to identify a similar price area, it is a market sign to pay attention to. These bullish signals fight against resistance, represented by the upper downtrend line, which is the upper line of a descending parallel trend channel.
Last week’s high of 30.98 is the apex of a counter-trend rally following a second low on the last trading day of 2023. If that high can be breached, silver will trigger a continuation of the bullish counter-trend rally and send prices higher. possibility that it could then take away the 32.33 swing high from earlier in December.
Outbreak Above 33.33
A decisive advance above the December swing high of 33.33 would trigger a bullish reversal based on the price structure of lower swing lows. Two other points are interesting to consider as they arise from observation of the weekly chart (not shown). It turns out that the second low of the double bottom pattern was 28.78 in December. That decline was essentially a successful test of support at the 50-week MA, currently at 29.14.
Silver has held support above the 50-week MA since regaining the week of March 4, 2024. Furthermore, last week’s high found resistance at the 20-week MA, now at 31.10. That means a breakout above the trend high at 30.98 could quickly encounter potential resistance around 31.10. Or a continuation of that price will provide further evidence that the bulls remain in control.
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