GLD

Silver Price Forecast: Targets Set for Further Gains

FXEmpire.com -

A monthly bullish breakout triggered in silver today as it rallied to a high of 23.93 thereby completing a 50% retracement of the most recent correction. It is on track to confirm the breakout with a close above the monthly high at 2.50. Moreover, today’s advance triggered a breakout of the 200-Day MA, which is currently at 23.27.

It happens to coincide with a break above a trendline. Further, on the weekly chart, a bullish hammer candlestick pattern triggered today. In other words, there are bullish signals on the monthly, weekly, and daily charts. That makes today’s advance potentially significant and increases the chance for upside continuation. When all time frames start saying the same thing, it is time to pay extra attention.

Next Higher Target Zone

Following a rally above today’s high of 23.90 silver will have a chance to reach a target zone from 24.39 to 24.61. That zone completes a 61.8% Fibonacci retracement at the lower price level and matches the December 22 swing high at the higher level. Nevertheless, given today’s bullish signs, it would not be surprising to see silver bust through that price zone.

Smaller ABCD Pattern Targets 24.27

Also, a large rising ABCD pattern (green) is drawn on the chart with an eventual target around 27.14. Given today’s price action a second and smaller rising ABCD pattern (orange) has been added. You can see that the first target of 23.84 was reached today. The second target, which is a 127.2% Fibonacci extension of the pattern, is at 24.27. Higher still is the third target from the pattern at 24.81. That higher target is extending the CD leg of the rally by 161.8% of the AB portion of the advance.

Bullish Signals on Multiple Time Frames

This could be the beginning of a shift in silver and what the bulls have been waiting for over many months. Silver has the potential to eventually bust through the high of the past several years. There are a series of higher price levels to be aware of, each was a key swing high that was followed by a correction. The decline off the most recent swing high of 25.91 showed the least degree of correction after it was hit. Further up are 26.14 and 26.95. Once there is a daily close above 25.91, siler should be ready to tackle these higher price levels.

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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