Silver commentary and Technical analysis – Part 3

Video transcript

Spot Silver chart Technical analysis – Charting patterns

(00:00):

The key points we want to notice here in our Technical analysis of the daily chart of Silver is that on Thursday price made this big strong green price bar where it surged up through the 50-day Moving average - that's the red line there.

And all the way up to test resistance at the top of this downward-sloping wedge Chart pattern.

That's the black dashed Trend line that we're looking at there.

If we zoom out, you can see, there's the, there's the top of our wedge Chart pattern.

There's the bottom of our wedge pattern and you see a horizontal Support and resistance level.

Price came up and tested this level from below back in late-March and the test failed.

Price action didn't have enough energy here to push through this Resistance level.

Spot Silver price had to pull back, gather some energy, surge back up and test the Resistance level again.

Of course, whatever was going on in the World at that point, the spot Silver price surged higher.

(01:19):

It was “Okay, see you, I'm gone”, and Silver punched right through.

Price didn't come back to retest this Support and resistance level for another two calendar weeks.

Now several retests have established this as a support level that looks like $14.60, $14.65 or so.

 

Price action in Spot Silver bullish

But again, the key point is that on Thursday the spot Silver price pushed up through the 50-day Moving average on a strong bullish move and then carried through on Friday.

So this is Friday's price action continued above the top of that downward-sloping wedge Chart pattern.

That established the Trend line as a Support level - we can see that price tested below that level, but closed above.

 (02:49):

Again, our Technical chart analysis shows Spot Silver price action interacting with and running into resistance at this long-term Support level.

 

Price chart of Silver in 4 hour time frame

Now let's pop down to the four-hour time frame.

When I go from the daily price chart down to lower time scales, I tend to pop back to my 10 and 40-period Moving averages and that’s what we see in this Silver price chart.

This is very bullish price action.

Silver is finding support along and above the 10-period Moving average.

The 10-period Moving average is getting extended or overbought from the 40-period Moving average.

So price is becoming overbought, but overbought can become more overbought.

 

Summary of Silver technical chart analysis

  • Spot price of Silver has pushed above the top of a downward-sloping wedge Chart pattern
  • Price action in spot Silver sliced through 50-day Moving average in a bullish display of strength
  • A long-term Resistance level is constraining Silver price action

 

Continued in part 4…