Silver staged a powerful upside breakout last week, with the popular metal rallying to its highest trading level since early March this year.
Silver price technical analysis shows that a bullish breakout from a falling wedge pattern is currently underway on the daily time frame.
Silver medium-term price trend
Silver appears increasingly bullish over the medium-term, as the metal trades at a ten-week high and moves in lockstep with the recent rally in gold prices.
Silver technical analysis over the medium-term shows that the metal could rally towards the $20.00 resistance level.
A bullish breakout from a falling wedge pattern took place last week, following a move above the $15.80 level. The rally has strong upside momentum behind it, and so far reached the $17.60 area.
According to the size of the mentioned falling wedge pattern, silver price could start to rally towards the $20.00 level.
Technical analysis indicates that bulls need to anchor price above the $17.50 resistance level to encourage the next major push higher in silver prices.
Silver short-term price trend
Silver price analysis over the short-term shows that bulls are in control while the price trades above the $15.10 technical level.
Lower time frame analysis shows that the strong rejection from the $17.60 level has created a bearish head and shoulders pattern.
The neckline of the head and shoulders is currently located around the $17.10 support level.
According to the size of the bearish pattern, silver price could correct back towards the $16.60 level area over the short-term.
Traders should also note that the $17.50 level has been a strong area of technical resistance for silver prices since mid-2019.
Silver technical summary
Silver price technical analysis indicates that silver price could correct back towards the $16.60 level before the next bullish rally commences. Buyers ideally need to anchor price above the $17.50 level to ensure further medium-term gains.