Silver is once again on the rise, after the United States Federal Reserve announced a massive open-ended bond buying programme earlier this week.
Silver price technical analysis shows that gains towards the $14.70 technical area remain possible while price trades above the $13.22 support level.
Silver medium-term price trend
Silver prices have staged a much-needed upside recovery, after the metal slumped towards its weakest trading level since 2009 last week, around the $11.60 technical area.
Silver technical analysis over the medium term shows that a major recovery has occurred, after the metal bounced from the bottom of a falling wedge pattern on the daily time frame.
The daily time frame shows that the $16.00 resistance level is the top of the falling wedge pattern and remains a valid bullish target while price trades above the $11.60 level.
It is noteworthy that falling wedge patterns are usually bullish reversal patterns. The $20.00 level is seen as a valid upside target if price starts to breakout above the pattern.
Silver short-term price trend
Silver price analysis over the short term shows that bulls are in control while price continues to trade above its key 100-period moving average on the one-hour time frame, around the $13.40 technical level.
The lower time frames currently show that a bullish inverted head-and-shoulders pattern has been triggered into action, after price moved above the $13.22 level.
According to the size of the pattern on the lower time frames, silver could be headed for a rally towards the $14.70 resistance level.
Overall, traders should expect more short-term gains in silver while price continues to hold above the $13.22 level.
Silver technical summary
Silver price technical analysis shows that a major reversal has occurred after price bounced from the bottom of a falling wedge pattern. Silver prices could rally towards the $14.70 and possibly the $16.00 level.