Silver Shows Signs of Strength Towards Continuation of Uptrend

Silver Forecast Video for 20.06.23 by Bruce Powers

Silver has been testing support of the 100-Day EMA, now at 23.54, and the long-term downtrend line for support over the past couple of weeks. During this time, it has mostly held above it. At the same time, support of the 200-EMA is slightly lower at 22.94. The recent retracement found support at the 200-Day line and the 50% retracement area.

Silver Shows Strength

Together, these are signs of strength, with the uptrend anticipated to continue. Notice that the 100-Day EMA was below the 200-Day line until early-January. It has been able to stay above the 200-since then and has more recently started to move away from the 200-Day EMA, a sign of strength.

April Breakout Significant

The breakout above the trendline in early-April was significant as that was the beginning of a move outside of a large descending trend channel starting in February 2021. Even though price retraced back into the pattern from a double top, the pullback found support at the 200-Day EMA and the 50% retracement. The underlying bullish picture remains given the characteristics noted above. It is also interesting to see that the 100-Day EMA has converged with the downtrend line. It will be above the line in a few days if price advances or holds steady.

First Key Target Zone

A daily close above the recent swing high of 24.51 provides the next confirmation of strength with the next target zone up around 26.93 and 27.06. That target zone consists of the prior swing high from March and the 127.2% Fibonacci extension of the latest correction, respectively.

Bigger Picture Remains Bullish

It is useful to keep in mind the larger picture in silver. Prior to the greater than two-year correction, silver had advanced 165.8% in 103 days, from a low in March 2020 to a high in August 2020. It made another attempt to go higher in February 2021, but quickly failed. There is a possibility of some form of measured move will show up, where is the current or a new advance see a pickup in volatility like what was seen in 2020. We saw a little bit of that in the rally from the March swing low, where there was a relatively rapid advance, and including a breakout above the downtrend line.

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