SLV

Silver Price Forecast: Hits New High at 32.52, Faces Resistance Zone

FXEmpire.com -

Silver begins the week with a new trend high of 32.52 and it is on track to close strong, in the upper third of Monday’s trading range. At the high silver was up by 6.50 points or 25.0% from the most recent swing low of 26.02 from May 2. Nonetheless, today’s high has put silver in a potential resistance zone that could lead to a pullback if not a larger retracement. An intraday pullback is in place at the time of this writing, but trading remains above the halfway point for the day’s range.

Fibonacci Confluence Marks Resistance from 32.13 to 32. 36

The confluence of Fibonacci price levels from 32.13 to 32.36 marks the current resistance zone. Although today’s high exceeded the top of the range, silver looks like it may close Monday within or below the price range. The previous trend high at 29.80 now marks a possible support area of some significance. Also, the 20-Day line has significance at 28.03. However, there are interim price levels to be aware of.

The first is at 31.46. That is a long-term 50% retracement of the decline that begun from the April 2011 peak at 49.81. It previously represented potential resistance on the way up this week, and now support, if further weakness kicks in. Today’s low is 30.95. If the price of silver falls below that level, a deeper pullback is likely on deck. There is also potential support around the top rising trend channel line. If hit today, it would represent approximately 30.60. A little lower is prior resistance from the February 2021 swing high at 30.14.

Larger Bullish Picture Remains

Silver remains bullish in the bigger picture. Last week it advanced to a new long-term trend high on a move above 30.14. It closed last week at its highest weekly closing price since February 2013. Last week’s advance also triggered the continuation of a large bull flag. The initial advance of the pattern designated the pole for the flag pattern. An initial advance from the pattern (pole) saw a rise of 156.5% in the price of natural gas in a relatively short amount of time.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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