Technical Overview: SILVER

While the price of silver increased as of late, it has trailed a recovery seen on the gold market. Looking at the weekly interval, one can see a slight rebound, but it would be too soon to speak of an upward trend. At the moment the trend line marked by the two recent peaks is being tested. Nevertheless, the key resistance can be found around $15.90, where we observed a reaction of the supply-side in February 2019. A break above this level would pave the way for an extended upward move. There is a good chance of reaching this level over the next few weeks in case the upward trend on the precious metals market, especially gold, upholds. The local upward trend is also supported by the fact that the low from May is above the low from late-2018.

Looking at the lower time frame - D1, the price bounced off from the local resistance level at $15.5 handle. The zone marked with red colour was drawn based on the previous price reactions and the 61.8% Fibonacci retracement level. Having said that, there is a scope for a correction movement towards the support level at $15 handle. However, the precious metal trade above the 40-period moving average, what may discourage bears from taking the stage.

Looking at the H4 time frame, we may consider making use of the market geometry. Note that if the ongoing pullback was to match in size the previous biggest correction, it would be halted at the support zone drawn on the D1 interval. A break below the $15 handle could herald a trend reversal. However, as long as SILVER price stays above it, the trend is upward.