Silver Price Forecast: Surges to New High, Bulls in Control
NEW YORK (April 8) Last week's weekly close confirms bull trend in silver, signaling potential for eventual new highs above 30.14.
Bullish upward momentum took silver to a new trend high of 28.09 on Monday and it is on track to close strong, above last week’s high and in the top third of the day’s trading range. Silver was up by 1.81 points or 26.1% from the February 28 pullback low as of today’s high, and 15.5% above the March 27 minor swing low.
Monday’s low of 26.86 successfully tested support around the prior March 2022 swing high of 26.95 before bouncing. That price area previously marked a zone of potential resistance as there is confluence of several Fibonacci targets. Now, it is an area of support. This is bullish price behavior and shows the bull trend strengthening.
Strong Weekly Close Confirmed Bull Trend
Last week’s weekly close above the May 23 swing high from last year confirmed a continuation of the bull tend that began from the August 2022 swing low. Further, the week also ended above the prior swing high of 26.95 from March 2022. That move further confirmed a reversal of the downtrend that started off the February 2021 peak. In summary, silver has broken out above key levels and is setting the stage for the possibility of eventual new highs, above the 30.14 peak from February 2021.
Measured Move Target of 27.86 Exceeded
A target of 27.86 in silver was reached during today’s advance. It completed a rising ABCD pattern or measured move as marked on the chart with vertical purple arrows. The larger rising ABCD pattern in green has an extended 127.2% target of 28.57, as the first target was already exceeded. Notice that the completion of the 28. 57 target will put silver up near the peaks from 2020 and 2021. Prior to those peaks silver had rallied by over 18 points or 156.5% in only 104 trading days. Might a similar sharp advance be seen again now that silver is coming out of consolidation and has clearly reversed the prior correction?
Moving Average Confirm Strengthening
Recent price behavior for silver relative to its moving averages is also giving bullish signs. Notice that last Friday successfully tested support around the 8-Day MA, leading to an advance. Two weeks ago, and last week the purple 20-Day MA was tested, and price was rejected to the upside. Further, notice the orange 50-Day is increasing its slope after recently breaking back above the 200-Day MA.
FXEmpire
