Bull Hammer reversing was activated
Nevertheless, a bullish reversal was activated from an important level of support and it sets the scene for further reinforcement. The low point of Friday at $ 30.81 has a higher swing low located at an identified level of support. And a rising trend line has been touched for the third time and at a similar price level such as the 50-day MA. These are Bullish Drawing that should lead to higher prices. They fit in a larger developing bullish pattern.
Note the falling trend channel with the top rule started from the Trend of October at $ 34.87. Friday’s Swing Low was the first withdrawal after the Bull-Breakout above that trendline in the end of January. Moreover, the same applies to the 50-day MA (Orange). It was reclaimed at the end of January and the De Lijn test on Friday, because support was the first since the breakout of the bull. As soon as earlier resistance is successfully tested as support after a bull outbreak, the trend is ready to stay higher.
Higher resistance has probably tested
Last week Silver set a relatively wide price range from a low of $ 30.81 to a high point of $ 32.76. That is why the strength would take place at a weekly time frame on an increase above $ 32.76. Until that time, resistance that is seen at the approach to that peak has less meaning. Given the wide range last week, it is possible that this week’s trade reach will end as an inner week.
Short-term turning position is around the four-day high point of $ 31.96, followed by the 20-day MA at $ 31.12. It seems that the market recognized the 20-day line on the way down. That is why a persistent turnout above the 20-day MA will go a long way in attaching strength. A daily close to the 20-day MA should significantly improve the chance of a challenge for resistance at the recent Swing high of $ 33.39.
Look for a look in all the economic events of today Economic calendar.