Bullhammer inversion triggered
Nevertheless, bullish reversals are triggered from the main support level and sets stages for further strengthening. Friday's lowest was $30.81, establishing a higher and lower swing at the identified support levels. And the third trend line was featured at a price level similar to the 50-day MA. These are signs of bullishness that should lead to higher prices. They fall into a larger, developing bullish pattern.
Beware of the topline degradation trend channel, which started with the October trend, with a topline of $34.87. Friday's swinglow was the first pullback after a bull breakout that surpassed the trend line in late January. Furthermore, the same applies to 50-day MA (orange). The line tests in late January and Friday were the first since the bull's breakout, so they recovered. This trend sets for a higher continuity when prior resistance is successfully tested as support after bull breakout.
Higher resistance may have been tested
Last week, Silver established a relatively wide price range from a minimum of $30.81 to a high of $32.76. Therefore, weekly time frame intensity occurs at an increase of over $32.76. Until then, the resistance seen in its approach to highs is less important. Given the broad scope of last week, this week's trading range could be one week.
The short-term resistance was a four-day high of $31.96, followed by a 20-day MA of $31.12. Certainly, the market appears to recognize the 20-day line along the way. Therefore, a sustained increase above the MA for 20 days will go a long way in checking strength. Daily closures beyond the 20-day MA should significantly improve the opportunity to challenge resistance at a recent swing-high $33.39.
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