Weekly Bearish Candles shows downward pressure
In view of the fact that Friday’s price range was relatively wide, a continuation of today’s advance from the low point of the day is certainly possible. But silver would go within the price range of a bearish pattern and therefore it is expected that resistance will eventually be hit and lead to further weakening. Note the clear bearish reaction on Friday as soon as the high of $ 33.39 was reached.
Friday ended near the lows of the day. Although there is a retracement level of 78.6% at $ 33.56, the extensive target of 161.8% of an increasing ABCD pattern (purple) seems to be the pattern, the bearish reaction influences. The ABCD pattern achieved its extensive target at $ 33.34.
Weekly graph is Bullish
With last week’s wide range, Silver could act this week in the price range of last week from $ 31.25 to $ 33.39. It is interesting to note that last week’s low point was on the MA of 20 weeks and it was the first full weekly reach above the 20 -week line since November. This is a sign of strengthening the longer period of time and therefore remarkable. It shows the progression of a weekly uptrend of the Swing Low in December, which offers Bullish Drawing, because earlier resistance has been successfully tested as support.
This makes the low point of $ 31.25 a significant support level last week. If silver can remain so low, it will continue to have a chance to go higher, because the weekly bull trend is retained and support on the 20 -week line.
Monthly graph also Bullish
The bull photo would not be complete without recognizing instructions on the monthly graph. In February Silver caused a monthly outbreak above the High of January. January was an indoor month, because the trade was included within the price range from December. The subsequent rally also broke out above both the highlights of December and the November, so that extra bullish signals were offered at the long -term time frame.
Look for a look in all the economic events of today Economic calendar.