Silver Forecast Video for 13.02.24 by Bruce Powers
Silver continued to rise off the 78.6% Fibonacci retracement that begun last Thursday, hitting a high of 23.08 before encountering resistance. Resistance was seen following a successful test of resistance at the top downtrend line. Subsequently, sellers took control, driving the price back down to the lower third of the day’s price range, which is where it remains. A weak close on Monday puts silver at risk of testing lower support levels again.
Contained Within Price Range of 23.33 to 22.14
Nevertheless, silver is contained within a range from around 23.33 to 22.14. It needs to get out of that range to begin to escape from consolidation. Until then, trading in silver will likely continue to be relatively choppy.
Price Range Tightening Within Symmetrical Triangle
A decline below last week’s low of 22.14 puts the 21.94 swing low at risk of being tested as support again. The 21.94 price level begins a support zone that goes down to 21.80. That range also includes the uptrend line. Notice that together the uptrend line and downtrend line create a symmetrical triangle type pattern in silver. The lines mark an important boundary for the consolidation phase. Therefore, a decisive breakout through one of the boundary lines, either up or down, designates initial signs for a breakout of consolidation.
Weekly Bullish Hammer Triggered
Regardless of Monday’s intraday weakness after reaching the day’s high of 23.08, a weekly bullish signal was generated on today’s upside breakout. Friday ended as a weekly bullish hammer candlestick pattern, and it triggered today. A daily close is next needed above last week’s high of 22.72 to confirm strength of the breakout. Currently, it is not clear if silver will be able to close above that price level. If it does, the chance remains for silver to further test resistance and follow through on the weekly bullish breakout. However, a weak close, below 22.72, puts Monday’s advance at risk of failure.
A failure of the bullish advance and a bearish signal would be indicated on a decline below Monday’s low of 2.52. That would increase the chance that silver again tests last week’s support of 22.14 and possibly drops further.
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.