Silver Price Forecast: Bull Run Continues, Targets 30.62 Amid Strong Demand

Silver continued its ascent on Monday, reaching a new high for the rally of 30.10. The advance showed continued strength in demand for silver as it rose further above the 50-Day MA. Last Friday the 50-Day line was broken to the upside with a daily close above the line at 29.21. That was the second attempted upside breakout of the 50-Day MA, and it followed a failed attempt to maintain support around the 50-Day line on Thursday.

Today’s price action shows sustained demand for silver following a quick one-day pullback last Thursday. A daily close above today’s high will confirm a continuation of the bull trend and keep silver in a position to test higher price targets.

Target Exceeded

The most recent target of 29.74 was reached last week and exceeded to the upside today. It was marked by the combined completion of a 61.8% Fibonacci retracement and the target from 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 start getting closer to the top downtrend line, which represents dynamic resistance for the trend. Before silver can challenge its recent swing high at 31.76 and the recent peak of 32.52 from May, it needs to first get above the downtrend line.

Weekly Bullish Signal Today

Today’s advance is not only a continuation of the daily chart, but it is also a bullish continuation on the weekly chart. Last week’s high was 29.97 and silver is set to close above that high today and confirm the strength of the weekly breakout. It looks possible that silver tests resistance around the 78.6% retracement area and the downtrend line in the current rally.

There have been two short pullbacks on the way up. Each time the recovery was quick as the bulls took back control leading to higher prices for the trend. Given the additional sign of strength yesterday, with a decisive rally above the 50-Day line, strength should be able to be maintained on the way up.

Key Near-Term Support Around 28.79

Nevertheless, if weakness does occur before new trend highs the recent pullback level at 28.79 is key support. A decline below that price level will likely lead to a deeper retracement. Unless that happens, the odds look to favor higher prices for silver.

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