Target exceeded
The recent target of 29.74 was reached last week and exceeded on the upside today. It was marked by the combined completion of a 61.8% Fibonacci retracement and the target of a rising ABCD pattern extended by the 161.8% ratio. The next upside target for the precious metal is the 78.6% retracement at 30.62. Depending on when it is reached, the 78.6% retracement level will approach the upper downtrend line, which represents dynamic resistance to the trend. Before silver can challenge its recent swing high at 31.76 and the recent peak of 32.52 from May, it must first get above the downtrend line.
Weekly bullish signal today
Today’s rise is not only a continuation of the daily chart, but also a bullish continuation of the weekly chart. Last week’s high was 29.97 and silver is likely to close above that high today, confirming the strength of the weekly breakout. It seems possible that silver will test resistance around the 78.6% retracement area and the downtrend line in the current rally.
There were two brief pullbacks on the way up. Each time, the recovery was quick as bulls regained control, leading to higher prices for the trend. Given the additional sign of strength yesterday with a decisive rally above the 50-day line, the strength should be able to be maintained on the way up.
Important short-term support at around 28.79
However, if weakness does occur before new trend highs are reached, the recent pullback level at 28.79 is a key support. A drop below this price level will likely result in an even deeper decline. If that doesn’t happen, the chances are good for higher silver prices.
You can find an overview of all current economic events in our Economic calendar.
