In recent trading activity, silver has demonstrated notable strength, breaking out from a brief consolidation phase that occurred around the central line of a rising trend channel. This consolidation transpired near the 10-Day moving average, underscoring the price’s consistent progression within the established channel. As the market sustains its breakout above this central line, the upper boundary of the channel emerges as a plausible target, bolstering the case for an ongoing bullish trend.
In the last week, resistance faced by silver appeared closely aligned with the 78.6% Fibonacci retracement level of a long-term decline that followed the peak in April 2011, where prices reached $49.81. Successfully surpassing this resistance level could significantly enhance the prospects of silver retesting its historic highs.
Taking a broader perspective, the current market scenario for silver reflects a larger bullish framework. Earlier in 2023, a breakout from a broad bull flag formation took place, although subsequent follow-through momentum was delayed until March 2024. This decisive advance has steered silver into its present rally phase. Prior to forming this flag, the market experienced a sharp increase, with prices advancing by $18.22—equating to an extraordinary 156.5% gain within just five months post the 2020 trend low.
While measured move targets based on raw price levels have already been surpassed, when viewed through the lens of percentage change, silver is positioned to potentially reach around $45.68. This figure corresponds with a 223.6% Fibonacci extension level, lending further credence to the idea that bullish momentum is still robust and that testing even higher levels is likely before any significant pullback occurs.
Market analysts continue to keep a close eye on economic reports and data, which will play a pivotal role in shaping future price action for silver and broader market movements.
