Silver long-term technical analysis

The price of silver under pressure in May and move toward $16.00 support level, but at the end of the month, it managed to close at $17.28 near the opening price $17.18. It is a positive sign as the close is higher than opening price and silver attempt to move higher in June. Initially, the price manages to move higher as high as $17.71 but experienced rejection which brings it lower to $16.32.

The outlook is neutral for now, and there is possible change to bearish while The Fed keeps pushing hawkish tone to the market. The hawkish tone will drive U.S dollar higher and in the end, push silver price lower.

There is nothing certain yet, and traders might want to wait for second-half economy projection from central banks before deciding any change in position.

Click here to see previous Silver long-term technical analysis May 2017

Monthly chart

The price of silver manage to bounce from $16.00, but the bounce losing altitude in June. Currently, the price is moving lower and attempt to reach $16.00 again. If this level were broken, it would open the downward way toward the long-term trendline.

The month will close soon and where the price closed is important for next silver movement.

Weekly chart

The bear is winning on the weekly chart with each lower close on the chart. However, the latest candlestick show possible pin bar pattern which is a reversal pattern. Next week, if the price continues higher and closes above the pin bar high, it will trigger more buying with target $17.730.

Daily chart

There is no lower low yet on the daily chart, the price holding against bearish pressure. Traders could look at the gray mark level, judging from the price action, it looks like a bounce coming soon. The target of this bounce is approximately near $17.50 before turning down. However, the upward scenario might be canceled if the price fell below $16.00.

Trade plan

Bullish: The daily chart show $16.80 – $17.00 as the nearest resistance level and the trendline as the support level. A long position could be taken from the trendline with target $16.80 – $17.00 with extension toward $17.50.

Bearish: Short opportunity might available near $16.80 – $17.00 or $17.50. Traders need to wait for a bearish pattern formed near the resistance level.