Silver Price Forecast: Navigating Key Support and Potential Bullish Reversal
Key Support Levels Under Scrutiny
Silver has dropped to a retracement low of 28.33, marking a 50% retracement of its most recent advance. Support has emerged, leading to some intraday bouncing. However, the price now hovers below the 20-Day MA, currently positioned at 28.63. A daily close above this line could signify stronger demand for silver and a bullish outlook moving forward.
Importance of the 20-Day MA
The relationship between the silver prices and the 20-Day MA is crucial as it indicates shifts in supply and demand. Recently, a rally broke through both the lower trend channel line and the 20-Day MA, peaking at 30.19. A pullback has occurred since, but attention is drawn to the 20-DayMA which may act as a pivotal support line for future price movements.
Potential for Higher Swing Low
If today's low holds, it may establish a higher swing low relative to the August 8 bottom at 26.47. This could form the C point of a rising ABCD pattern, targeting 32.05. ABCD patterns often achieve symmetry between price changes, suggesting this target is plausible.
Watch for Key Support Levels
Despite the bullish signals, further pullbacks are possible. The 61.8% Fibonacci retracement at 27.89 represents a key support area. If the prices drop below today's low of 28.33, the market will need to reassess support perspectives here.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.