Silver Price Forecast: Bullish Breakout Stalls, Resistance at $31.10 High

Silver reached a high of 31.10 on Monday but it didn’t stay there for long. That high was followed by increased selling pressure that dropped the price of silver and put it in a likely weak position for the day’s close. At the time of this writing, silver is set to end the day with a shooting star candlestick pattern. Today’s high essentially completed an 88.6% retracement (31.15) before sellers took back control.

Further, a breakout earlier in the day’s session above Friday’s high 30.92 triggered a breakout of the top downtrend line. It marked the resistance boundary of a bearish correction that began following the May 2024 high. Given the subsequent bearish reaction following the 31.10 high, and a likely daily close below the line, it looks like further resistance may be seen.

Pullback Below 30.59

A drop below today’s low of 30.59 will likely lead to a deeper pullback. It would trigger the bearish shooting star candlestick pattern in an area of identified resistance at the top of a range around the trendline. If there is a further pullback watch for possible support around the 50% retracement level at 29.39. Further down is a price zone from 29.18 to 29.00, consisting of the 20-Day MA and 50-Day MA, respectively.

Eventual Continuation to the Upside is Likely

Nonetheless, another bullish breakout attempt should follow a pullback. And it could lead to a sustained advance above the trendline. The first higher target would be the completion of a rising ABCD pattern at 31.43. Notice that the purple 20-Day MA just crossed back above the orange 50-Day MA after being below it since July 18. This is a bullish indication that has only just begun. The monthly chart is also bullish.

Bullish Monthly Breakout Confirms Strength

Last Friday’s rally triggered a bullish monthly breakout for silver. It indicated the likely completion of a three-month bearish correction on the monthly chart. The rally before the retracement from the May high of 32.52, lasted three months. It just triggered and could be in its infancy. Following a sustained breakout above the downtrend line silver has the potential to eventually rally to a new trend of 33.86. That price level begins a target range up to 34.06.

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