Silver Triggers Bullish Reversal on Move Above Friday’s High

Silver Forecast Video for 27.06.23 by Bruce Powers

Silver completed at a 61.8% Fibonacci retracement last week as it dropped below 22.19 to reach a low of 22.10 for the week. Further identifying the same area as support is the 127.2% Fibonacci extension of the most recent bounce. Today, silver is showing signs of a bullish reversal off last week’s low as it triggers a breakout above Friday’s 22.67 high. And it is on track to close above that high today thereby confirming the signal.

Current Correction Less Than the Last One

As of last week’s low, silver was down 15.2% from the 26.12 high from May 5. If last week’s low completes the correction, then the current correction is showing relative strength versus the prior correction. That previous retracement was 19.7% off the 24.62 high from February 2.

Resistance Areas to Watch on the Way Up

Resistance was seen at today’s high of 22.88, just shy of potential resistance around the 200-Day EMA, at 22.93. Weekly confirmation of strength will not occur until silver exceeds last week’s high of 24.16. That is still a way up. It looks possible that silver trades within the 24.16 to 22.10 weekly range this week unless there is enthusiastic upside follow-through before the end of the week. A daily close above the 200-Day line will be the next sign to further confirm strength.

After that, the next higher price area to watch is the downtrend line and 50% retracement at 23.31. A more significant pivot is around the 61.8% Fibonacci retracement at 23.59 as the 34-Day EMA (orange) has now converged with that price area and is also marking it as a potentially significant pivot zone. Not only is a daily close above the 34-Day line bullish, but it looks like by then silver would also be above its long-term downtrend line.

Bullish Outlooks Improves Following Daily Close Above Long-term Downtrend Line

A daily close above the long-term downtrend line will be the more significant bullish sign for silver. If silver has completed its correction, the next likely development is for a continuation of the breakout of a multi-year declining trend channel that triggered on April 4. It is currently in a retracement from the high of 26.12 following that breakout.

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