Bullish Momentum in Silver Signals Higher Price Targets

Silver Forecast Video for 17.10.23 by Bruce Powers

Silver found resistance last week at a high of 22.80 on Friday. That high marks a test of the long-term downtrend line (blue) as resistance and it held, leading to a bearish intraday reversal. Today, silver consolidates as it trades inside day. Further, last week’s high was also at the convergence of two shorter trendlines, one rising from the September swing low and the second, declining from the August 30 swing high.

Bullish on Both Daily and Weekly Charts

Both the daily and weekly time frame charts show bullish indications for silver. Silver has been advancing in a clear uptrend on its daily chart from its recent swing low of 20.67 hit two weeks ago. Further, last week triggered a bullish reversal on the weekly chart as a bullish hammer candlestick pattern triggered a breakout on a move above the previous week’s high of 22.18.

Multiple Resistance Indications Point to Same Price Zone

Note how last week’s high resistance matches the crossover of the three trendlines referenced above. A decisive breakout above last week’s high will have silver next testing resistance of the 200-Day EMA, currently at 22.59. Once a daily close occurs above the 200-Day line, then silver will have reclaimed all three trendlines, including the more significant long term downtrend line, and the important 200-Day EMA. That should clear it for a continuation higher.

Further signs of strength will then be confirmed on a rally above the interim swing high of 23.76. That should be followed by an advance above the top dashed orange channel line, and then the swing high of 25.00 from August 30. These additional signs of strength should eventually lead to silver testing prior swing highs of 26.12 and 26.93 on its way to still higher prices.

Inside Day for Aggressive Traders

Aggressive traders may use the inside day as a bullish signal rather than waiting for a move to new trend highs. In that case, a decisive breakout above today’s high of 22.71. Given the positioning of today’s inside day near the high of the trend and its narrow range, an upside breakout should show aggressiveness relatively quickly. Subsequently, a drop below today’s low of 22.46 points to a failure of the bullish breakout.

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