The news article discusses the potential for a bullish reversal in silver prices, with a rally above 28.20 triggering this shift. Support has been evident around the top downtrend line, previously a resistance now turned into support. With each of the past few days closing at or above this line, along with support around a falling ABCD pattern completion at 27.81, there is technical evidence pointing towards a possible bounce in silver prices.
If today’s low of 27.31 fails to hold as support, silver could face lower price levels starting with 26.74, as indicated by a 127.2% extension for the falling ABCD pattern. A support zone is identified between a 26.14 swing high from May 2023 and the 200-Day MA at 25.89, with additional levels such as a swing high of 25.91 from December 2023 and a swing low of 26.02 from May also factoring into the target range. The 61.8% Fibonacci retracement is set to complete at 25.98, highlighting the potential downside risks for silver prices.
Looking ahead, a rally above 28.20 could open the door for an advance towards potential resistance levels at 28.57, 29.45 (last week’s high), and further towards the 50-Day and 20-Day MAs. The article provides a technical analysis of silver prices, outlining both bullish and bearish scenarios based on key support and resistance levels, offering insights for traders and investors in the precious metals market.
