Silver long-term technical analysis
There is not much interesting update on silver as the price continues its ranging movement between $16.00 – $17.50. No close outside of the range yet since January’18 and it is possible the ranging will continue. This month, there is a mini bearish pressure which pushes the price down below $16.00, but it seems the bull return before the selling could continue.
Traders might want to stay sideline or looking for a mini long position as silver threading at the bottom of $16.00 – $17.50 range.
Click here to see previous Silver long-term technical analysis June 2018
Silver has not moved out of the triangle pattern on the monthly chart yet. Moreover, the range stays intact between $16.00 – $17.00 for several months. Recently, the precious metal tested the bottom of the triangle and bounced. Will the bounce continue upside and test top of the triangle again?
We add a yellow area on the weekly chart which shows demand area of silver. The price always bounces from the area and currently, there is an opportunity for a long position. Nothing changed yet unless the bottom trendline tested and broken by the bear.
The outlook of silver on the daily chart shown a sideway ranging movement between $16.00 – $17.00 until the area broken downside in recent days. Breakout happens though it is not a strong breakout. At this moment, $16.00 will act as resistance.
Bullish: The best possible scenario for a long position is when the price testing bottom trendline on the monthly chart.
Bearish: Short position is best taken when the price hit level between $17.00 – $17.50. The short-term short position could be taken from $16.00.