Alternatively, an upside breakout above $63.58 would be a bullish signal that could mark the beginning of a trend reversal following the bearish correction. If the recovery is sustained, silver could head toward the next upside target zone from around $69.93 to $71.56, consisting of the 200-day moving average and a lower swing high from June, respectively. Further validating the potential resistance zone are the 50-day moving average near $71.06 and a long-term uptrend line that previously represented dynamic support.
Momentum Improves as Resistance Takes Center Stage
There are a couple of other recent bullish signs to be aware of. First, Monday’s advance triggered a breakout above last week’s high of $62.90. Second, on Friday, silver closed above the prior trend low of $61.51 for the first time since falling below it, providing another indication that bullish momentum may be improving. Nevertheless, because silver is now testing the same key resistance zone highlighted at the beginning of this analysis, the next directional move will likely be determined by either a decisive breakout above the 50% retracement at $63.58 or a decline below Monday’s low.
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Source: Original Article
