Silver Surges: Bullish Momentum Targets Key Resistance Levels

Silver Forecast Video for 28.11.23 by Bruce Powers

Silver reached its next higher target zone today with the completion of an ABCD pattern at today’s high of 24.86 (D). The actual completion is at 24.88, only 2 cents away and close enough. Subsequently, resistance was seen with the price of silver pulling back intraday. Today’s advance is the second bullish day following a breakout of a trendline that triggered last Friday.

Complete of ABCD Pattern at Today’s High

The completion of the rising ABCD pattern shows where the CD leg of the advance matches the price appreciation seen in the first leg up in the AB leg. It reflects the tendency for financial markets to show similarity between swings. The initial target completion identifies a pivot or decision point. Price may begin to retrace, move into consolidation, or break through the pivot reflecting strength.

Series of Monthly Targets Follows

Today’s high begins a potential resistance zone that goes up to around the 25.00 swing high and monthly high from June. It is quickly followed by the 25.25 swing high and monthly high from July 2023. The more significant monthly high is at 26.12 from May. Each of these price areas is a potential target now that silver is trending up again. May’s high is marked as more significant because a bullish trend continuation signal is triggered on a move above that high. The uptrend that began from the September 2022 swing low of 1,754 previously encountered resistance in that price area. It was followed by a five-month correction that bottomed out in October.

Long Term Bullish Signs for Silver Kick In

Given the larger bullish signs in silver, a deeper retracement from today’s high should find support above the downtrend line. Not only does today’s advance confirm the trendline breakout but it also shows a breakout from the declining correction that began from the May highs. Further, it puts silver well above the long-term downtrend line that comes down from the February 2021 swing high at 30.08.

The initial breakout above the long-term downtrend line triggered in early-April and was followed by a bearish correction into October.

Large Bull Flag in Play

What is interesting about silver on a long-term basis is the sharp advance that came before the top in August 2020 at 29.83. Characteristics of a large bull flag can be seen in this next weekly chart. Silver had risen by 165.8% in 20 weeks from the March 2020 swing low 11.22 to the August 2020 high. A second top was then put in at the February 2021 high. Recent price action is silver is showing a completion of the correction that followed the 2021 high. This means that aggressive demand may again show up in silver, like what was seen prior to the August 2020 peak.

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