Silver Price Forecast: Double Bottom Breakout Signals Bullish Continuation for Silver

Silver broke out of a double bottom pattern on Monday as it rallied above 31.54 to hit a high of 32.28 for the day. That high completed a 50% retracement of the recent decline at 32.26. The advance also reclaimed the 50-Day MA at 31.71, further indicating strength. Also, silver pulled back from the high intraday. If it can close above 31.76, the double bottom breakout will be confirmed. And a daily close above the 50-Day line would provide an additional indication of strength.

Bullish Reversal Should Lead Higher

The minor swing low of 30.83 from last Friday provides near-term support along with the 20-Day MA, now at 30.79. If silver remains above the 20-Day line, it has a chance to continue to strengthen. Support for the recent correction was seen from the two bottoms at 29.68 and 29.64. Moreover, a 61.8% Fibonacci retracement was completed at 29.68. In addition, notice that support for the double bottom was seen around trendline support for the line declining from the May 2024 swing high.

Several Bullish Signs Today

Notice that today’s breakout followed a minor test of support around the purple 20-Day MA last Friday and again today with the day’s low of 30.87. A successful test of support around the 20-Day MA just prior to an upside breakout provides an additional bullish sign. The line was reclaimed on December 3, followed by a pullback to test support last Friday. Today’s advance confirms the signs of strength and triggered a bullish continuation of the small uptrend that began from the second bottom at 29.64.

Reaches Five-Week High

Today’s advance took silver to a five-week high. This further confirms strength as the higher time frame weekly chart (not shown) also shows a bullish breakout. Above today’s high of 32.28 will be the interim swing high of 32.51 from May at 32.51. There could be minor resistance seen there. The double bottom pattern provides a potential upside minimum target of 33.87. That is derived by measuring the price range from the top to bottom of the pattern and then adding it to the breakout level around 31.76.

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