Silver Price Forecast: Analyzing Stalls Near Trendline Resistance

Current Silver Price Situation

Silver pulled back from last week’s 31.43 high on Monday, which triggered a down day with a lower daily high of 31.19 and a lower daily low of 30.36. It remains within a six-day consolidation zone that has been attempting to breakout above a downtrend line. Friday’s price action signaled a breakout, as the day remained fully contained above the trendline, closing strong at the day’s top third.

Trendline Resistance Analysis

Last week’s high marked an initial target for a rising ABCD pattern (purple), seemingly halting the ascent for now. If the pullback continues, several price levels present possible support: the 38.2% Fibonacci retracement at 29.56 and closely aligned with the 20-Day MA at 29.46. Additional support levels are found at the 61.8% Fibonacci retracement at 29.12 and the 50-Day MA at 28.98.

Potential Upside Breakout

During the latest retracement, silver found support at 26.47, followed by a rally and a higher swing high. This low successfully tested support around the 200-Day MA at 26.08, marking the first test since March 4. The recent higher swing low suggests strength, further highlighted by last week’s breakout. An additional follow-through attempt above the trendline is likely.

Bullish Indicators Above 31.41

A decisive rally surpassing last week’s high of 31.41 could spur a continued advance for silver, aiming to reclaim the 31.755 interim swing high from July 11. Following that, attention shifts to the recent swing high of 31.52 and the target zone of 32.34 to 31.42, which incorporates critical Fibonacci levels.

Monthly Chart Insights

The monthly chart also favors an eventual upward resolution, with a bullish reversal kicked off earlier this month after surpassing the 30.19 August high, moving away from three months of declines.