Silver has pulled back towards the $17.00 level after a short-lived spike above the $18.00 resistance level last week.
Silver price technical analysis shows that bulls need to keep price above the $16.90 level this week to encourage a rally back above the $18.00 level.
Silver medium-term price trend
Silver is starting to test towards the $17.00 support level, after suffering a second heavy rejection from the $18.00 level last week.
Price is now moving towards the metal’s trend-defining 200-day moving average, around the $16.90 support level.
Silver technical analysis over the medium term shows that bulls could still rally price towards the $18.60 level while price is above the $16.90 level.
A rising price channel is currently in play across the daily time frame. Bulls need to defend the bottom of the channel, around the $17.20 level, to avoid a drop towards the $16.90 level.
If silver can hold inside the rising price channel, then a rally towards the top of the channel, around the $18.60 level, seems likely.
Silver short-term price trend
Silver price analysis over the short term shows that the metal has a bullish short-term bias while price trades above the $16.40 technical level.
The four-hour time frame shows that a head-and-shoulders pattern was invalidated last week after price rallied above the $18.00 level.
However, bulls failed to maintain price above the structure of the bearish reversal pattern.
Short-term bulls could rally price back towards the $17.50 level if the $17.00 area holds firm. A sustained break above the $17.50 level would suggest another test of the $18.00 level.
It is noteworthy that the size of the invalidated head-and-shoulders pattern indicates that a $1.50 directional move is coming once the $18.35 to $16.90 price range is broken.
Silver technical summary
Silver price technical analysis shows that silver is testing critical technical support after being rejected from the $18.30 level. Bulls may move price back towards the current monthly high if the $17.00 support area holds.