Bulls need to overcome $15.87 resistance level: silver technical analysis
13:18, 16 April 2020
Silver has risen to its highest trading level since 12 March, however, unlike gold the metal has failed to rally to fresh 2020 trading highs.
Silver price technical analysis shows that bulls need to overcome key trendline resistance, around the $15.87 level, to force a breakout from a falling wedge pattern.
Silver medium-term price trend
Silver has continued to build on its recent gains, with the multi-week recovery from the $11.60 level so far finding resistance from just below the $16.00 level.
Silver technical analysis over the medium-term shows that a breakout above the $15.87 level may see the metal testing towards the $16.50 area.
The daily time frame clearly shows that price has tested the top of a falling wedge pattern, around the $15.87 level. Failure to break above the wedge has prompted a minor technical pullback.
According to the size of the wedge pattern, a bullish breakout could prompt silver prices to rally towards the $20.00 level over the medium-term. However, the $16.50 level appears to be the initial upside target if a bullish breakout does take place.
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Silver short-term price trend
Silver price analysis over the short-term shows that bulls are in control while price continues to trade above the $15.00 technical level.
The lower time frames currently show that price is making bullish higher highs and higher lows, and silver is still attracting dip-buying interest.
A loss of the $15.10 level would break the bullish sequence of higher lows, and encourage technical selling towards silver.
With this in mind, traders should expect a reaction in silver prices once the $15.87 or $15.10 price range is breached.
Key short-term support below the $15.10 level is found at the $14.80 and $14.50 level, while key short-term resistance above the $15.87 level is found at the $16.50 and $17.00 levels.
Silver technical summary
Silver price technical analysis indicates that silver may trade in a wide range, between the $15.10 and $15.87 levels, before the next major move occurs. The daily time frame clearly shows that silver is still trading within a large falling wedge pattern.
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