- Silver is in the hands of the bulls on a long-term time frame but lacks conviction on lower time frames.
- If daily support holds, then the bulls have a shot at a continuation to pressure bearish commitments at weekly resistance.
The price of silver has been testing critical support on Thursday, trading lower on the day so far, rejected by the daily resistance of a 38.2% Fibonacci retracement of the latest bearish daily impulse.
However, so long as support holds, then there is the prospect of a higher high from a longer-term perspective.
The following is a top-down analysis that illustrates where the next opportunity on the long side could come from a solid support structure.
Monthly chart, silver
The monthly W-formation’s neckline has been tested within last week’s price action.
Prior to that, the 38.2% Fibonacci retracement of five consecutive months for bullish closes was met and has continued to act as a major support.
There is a bullish bias on this basis, but there is plenty of structure to get through on the lower time frames as follows:
Weekly chart, silver
The weekly chart is bearish while below the resistance structure following such a massive rejection and lower close on the same weekly candle.
With just a day to go until the close of the current week, bulls will need to do some work for a bullish close.
Daily chart, silver
The W-formation’s neckline has already been retested and bulls could now well be on the lookout for an optimal entry point to target the upside again.
Credit: FX Street