Silver Forecast: Retracement Signals and Continues to Lower Prices

Silver Forecast Video for 25.07.23 by Bruce Powers

Last week’s high in silver at 25.25 completed a 78.6% Fibonacci retracement of the previous advance before finding resistance that leads to a correction. That new trend high day last Thursday ended in a bearish reversal day with a close below the lows of the previous two days. The retracement continued into this week with silver on track to decline to at least the first 38.2% Fibonacci retracement level measuring an internal upswing at 24.20. A previous minor swing high saw resistance at 24.19 thereby strengthening the potential significance of the 24.20 price zone. The low of the day at the time of this writing is 24.27.

Silver Hit High Following 12.2% Advance

Silver previously saw a relatively sharp 12.2% advance in 10 days from the most recent swing low of July 6 to last week’s high. The degree of retracement before a bullish reversal that is sustainable will provide some insight into the potential for silver to rally off the retracement low. The first support target is noted above. The second will be around the 38.2% Fibonacci retracement of the larger advance that starts from the June 23 swing low. It comes in at 24.05. However, a little lower is the 23.88 price support area that is anchored by the 50% retracement of the internal uptrend as well as the 34-Day EMA, now at 23.86.

Uptrend is Improving

The uptrend price structure in silver from the September 1 swing low of 17.54 remains intact with a clear series of higher swing high and higher swing lows. Of significant are the signs of strengthening seen from the last retracement. Silver found support at a low of 22.10. That level is marked by both the completion of a 61.8% Fibonacci level and the 127.2% completion of an extended ABCD pattern.

Notice that an internal uptrend line has been drawn from the beginning of the uptrend to the new swing low. It shows the angle of ascent to be increasing when compared to the prior uptrend line. This is bullish behavior. Additional recent bullish behavior includes the 34-Day EMA crossing above the 100-Day EMA and silver closing on multiple days above the prior swing high of 24.51 from June 9.

For a look at all of today’s economic events, check out our economic calendar.