Silver’s Recovery: Rallying Off Support and Bullish Patterns Point to Higher Prices

Silver Forecast Video for 06.06.23 by Bruce Powers

Silver has been rallying off support of its 200-Day EMA (blue), which was hit two weeks ago with a low of 22.66. The 200-Day line is currently at 22.84. That low also completed a 50% retracement of the prior trend.

Bullish Behavior Monday

Last week, resistance was seen at a high of 24.00, leading to a retracement today, Monday. Nevertheless, support was found earlier in today’s session at the day’s low of 23.23. Subsequently, buyers stepped up leading to a recovery to at least the opening price. Last week’s high was at the confluence of the 38.2% Fibonacci retracement, plus the 34-Day EMA. The 34-Day line is currently at 23.92. As we head back up a daily close above the 34-Day line, now at 23.67, will be bullish. Also, a daily close above the 38.2% Fibonacci level at 23.98 will be bullish.

Silver About to Complete a Bullish Candle Pattern

Silver is currently on track to complete Monday with a bullish doji hammer candlestick pattern. This is a bullish pattern as sellers were initially in charge, but the session is about to end with buyers in charge. Such bullish sentiment can carryover to an upside continuation within the next day or two.

New Rising ABCD Pattern with Multiple Targets

A new rising ABCD pattern has been added to the chart given today’s intraday bullish rally off the low with the assumption that the low will not be exceeded to the downside before the ABCD pattern target is hit. The 100% completion of the pattern occurs at 24.58. Extended targets from the pattern are up at 24.94 and 25.41, consisting of the 127.2% Fibonacci extension target and the 161.8% target, respectively.

Weekly Pattern is Bullish

On a weekly basis, last week was a higher high and higher low, when compared to the week before. This is further evidence that a bounce is in the works with higher prices likely. In addition to the targets from the completion of the ABCD pattern, also watch the 50% retracement at 24.39, followed by the 61.8% retracement at 24.80.

A Daily Close Above 24.00 Gives a Bullish Signal

The big picture in silver is bullish as it broke out of a long-term declining parallel trend channel and closed above it on a weekly basis. A daily close above last week’s high of 24.00 will trigger a bullish trend continuation and again clearly put silver back above the downtrend line it is then able to continue to follow-through on the bullish channel breakout into higher prices.

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