Silver’s Bullish Momentum: Potential Breakout and Price Targets

Silver Forecast Video for 24.10.23 by Bruce Powers

Following a 2.9% advance last week silver takes a rest and trades inside day today, Monday. Silver advanced to a high of 23.68 last week, as it tested resistance around the September 22 swing high of 23.76. However, last week’s high was quickly met with resistance, driving silver down to close in the lower half of Friday’s trading range. The week remains bullish with a close for the week above the middle of the range at 23.02.

Silver Resting as it Prepares to Continue Higher

Silver is sitting in a healthy position that could lead to a continuation higher. It is sitting around support of both the 50-Day EMA (22.80) and the 200-Day EMA (23.03), plus the long-term downtrend line around 22.78. Note that the downtrend line goes through the middle of recent consolidating price action.

Inside Day Breakout Used by Aggressive Traders

Aggressive traders sometimes use a breakout of an inside day for a signal. For silver, starting in Tuesday’s trading session, an inside day bullish breakout occurs on a rise above today’s high of 23.32. Silver then needs to get over last week’s high before it targets the next higher price zone around the 78.6% Fibonacci retracement at 24.07. If reached, silver would be clearly above the interim swing high of 23.76, which will provide an additional piece of evidence supporting a bullish move.

Daily Close Above 23.76 Points Higher

A daily close above the 23.76 swing high will provide a new level of confidence for the rising trend as the downtrend price structure will be violated at that point showing additional signs of strength. The next two higher key price levels will then be the two swing highs at 25.0 and 25.25, respectively. A daily close the higher price level frees silver to continue higher. Certainly, a test and likely breakout above the May 5 swing high at 26.12 will be in the works if silver can first close above 25.25.

Bigger Picture Remains Bullish

Since hitting the 26.12 swing high silver has been consolidating in a wide downward sloping trend channel. Once it comes out of the consolidation range it has a chance to accelerate its price appreciation. Before a larger declining consolidation range, starting from the February 2021 trend high, silver had advanced by 165.8% in only 20 weeks. Similar enthusiasm from buyers may be seen again once silver clears above the 26.12 swing high.

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