20 day line rises
Further supporting the bullish theory, the 20-day moving average started rising last week and is converging with the internal uptrend line and double bottom neckline. When the indicators align and identify similar price ranges, it's a sign that the market should pay attention. These bullish signs are fighting resistance represented by the upper downtrend line, which is the upper line of the descending parallel trend channel.
Last week's high of 30.98 is the top of a countertrend bull market following the second low on the last trading day of 2023. If silver can break above that high, it will trigger a continuation of the bullish countertrend uptrend and push the bull market higher. It could then surpass its swing high of 32.33 in early December.
Breakout above 33.33
A decisive advance above the December swing high of 33.33 could trigger a bullish reversal based on the price structure of the lower swing low. The other two points are interesting to consider because they come from observations of the weekly chart (not shown). It turns out that the second low of the double bottom pattern in December was 28.78. This decline essentially tested the success of support at the 50-week moving average, currently located at 29.14.
Silver has maintained support above its 50-week moving average since its recovery the week of March 4, 2024. Additionally, last week's high is currently finding resistance at the 20-week moving average at 31.10. This means that if we break out of the trend high of 30.98, we could soon encounter potential resistance near 31.10. Alternatively, if the price sustains, we will see further evidence that the bulls maintain control.
Check out our news for all today's economic events. economic calendar.
