Silver Price Forecast: Bullish Reversal Signals Strength and Potential Upside

Bruce Powers
Updated: Sep 11, 2023, 20:26 GMT+00:00

Today's strong performance suggests a possible upward trend, with key resistance levels in focus.

Silver coins, FX Empire

In this article:

Silver Forecast Video for 12.08.23 by Bruce Powers

A potential bullish reversal day is indicated today in silver. At the opening on Monday, it dipped sharply to a new trend low of 22.57, before finding support and rallying to a three-day high of 23.21. That high tested resistance of the 200-Day EMA, which is at 23.225, and it held so far.

Today’s wide range outside day is set to close green for the day and relatively strong, in the top half of the day’s range (above 22.89). Further confirmation of strength will be seen on a daily close for Monday in the top quarter of the day’s range (above 23.05). And of course, a daily close above 23.17 puts silver in a stronger position, closing above the highs of the previous two days.

A graph with lines and numbers Description automatically generated with medium confidence

Bullish Reaction off New Retracement Low

Given the bullish reaction from a new retracement low, today’s low essentially completed an 88.6% Fibonacci retracement, which is at 22.52. Silver remains below the 200-Day EMA, and it needs to get back above it to instill greater confidence for the bulls. A decisive rally above today’s high of 23.21 triggers a bullish signal that should see silver easily advance above the 200-Day line. Once a daily close occurs above the 200-Day a bullish reversal potentially ending the current correction happens. Until then, pullbacks can be watched for bullish setups to take advantage of the subsequent potential continuation higher.

Getting Back Above Long-Term Trend Indicators is a Sign of Strength

In addition to the long-term trending indicator, the 200-Day EMA, the long-term downtrend line is also close by. You can see how the market seems to be recognizing the trendline the past few days and today silver could close right at it. Although the value of these lines is greater in a trending environment, they still can be used to provide additional insight into silver’s price action.

You can see how silver has traded both above and below the lines for the past few months. Once a bullish reversal is confirmed (daily close above 200-Day line, at 23.225 currently, silver should be ready to continue to evolve its longer bullish pattern. This means it has the potential to exceed the recent swing high of 26.12 and keep rising.

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

About the Author

Bruce boasts over 20 years in financial markets, holding senior roles such as Head of Trading Strategy at Relentless 13 Capital and Corporate Advisor at Chronos Futures. A CMT® charter holder and MBA in Finance, he's a renowned analyst and media figure, appearing on 150+ TV business shows.

Did you find this article useful?