Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Silver Technical Analysis: Prices Pressing Resistance / 2017 Highs

Silver Technical Analysis: Prices Pressing Resistance / 2017 Highs

Michael Boutros,

Silver prices have continued to struggle at a key Fibonacci confluence at 18.33/39 where the 100% extension of the December advance converges on the 50% retracement of the decline off the 2016 high. Keep in mind that this region is also defined by the 2017 yearly opening-range highs and if compromised, would reinforce the broader bullish outlook.

Chart 1: Silver Daily Timeframe (June 2016 to April 2017)

The precious metal continues to trade within the confines of an ascending pitchfork formation extending off the November / December lows with the median-line offering support this week. An outside-day reversal candle today at the highs may be an indication of near-term exhaustion for the silver rally heading into the close of the week, but the broader focus remains weighted to the topside while within this formation.

Chart 2: Silver 4-hour Timeframe (March 17 to April 7, 2017)

A closer look at price action highlights ongoing momentum divergence into these highs with price attempting to breach the February highs earlier today. We’d need to see a weekly close above this threshold to validate a breakout with the immediate long-bias at risk while below. A break below the 200-day moving average / May high at 18.00/04 would be needed to mark a near-term correction lower in prices. That said, a breach above this threshold targeting subsequent topside targets at 18.58/60 backed by the key 61.8% retracement at 19.02. Note that both the daily & intraday momentum profiles remain constructive for now & we’ll be looking for a marked break sub-50 to suggest a more meaningful turn is underway.

--- Written by Michael Boutros, Currency Strategist with DailyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES