The Silver Market, on the D1 time-frame, was in a downward movement until the 28th of May when a lower bottom was recorded at 14.29720. Buyers found the price inviting and demand overpowered supply.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 14.40030 and 14.29720. This could have alerted technical traders to a possible bullish reversal in progress.
After the bottom at 14.29720 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator lunged through the zero baseline into bullish terrain, both confirming the possibility of a trend reversal.
A possible critical resistance level formed when a higher top was recorded on the 7th of June at 15.16524. Sellers then briefly pressed the price lower and a higher bottom was registering on the 10th of June at 14.63751.
On the 14th of June buyers almost managed break out of the resistance level at 15.16524 but sellers came in and neutralized the demand pressure with a Shooting Star Candle resulting. Demand however still proved to be robust enough to cause another higher bottom when demand once again overwhelmed supply.
If the buying pressure in the Silver market manages to break through the critical resistance level at 15.16524, three possible price targets may be expected from there. Attaching the Fibonacci tool to the top of the possible reversal at 15.16524 and dragging it to the bottom of the pullback at 14.63751, the following targets may be considered. The first target can be anticipated at 15.49138 (161 %). The second price target can be predicted at 16.01911 (261.8%) and the third and final target may be expected at 16.87297 (423.6%).
If the support level at 14.63751 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as bullish sentiment prevails and demand overcomes supply, the outlook for the Silver Market on the D1 time-frame will remain positive.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 14.40030 and 14.29720. This could have alerted technical traders to a possible bullish reversal in progress.
After the bottom at 14.29720 the market broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator lunged through the zero baseline into bullish terrain, both confirming the possibility of a trend reversal.
A possible critical resistance level formed when a higher top was recorded on the 7th of June at 15.16524. Sellers then briefly pressed the price lower and a higher bottom was registering on the 10th of June at 14.63751.
On the 14th of June buyers almost managed break out of the resistance level at 15.16524 but sellers came in and neutralized the demand pressure with a Shooting Star Candle resulting. Demand however still proved to be robust enough to cause another higher bottom when demand once again overwhelmed supply.
If the buying pressure in the Silver market manages to break through the critical resistance level at 15.16524, three possible price targets may be expected from there. Attaching the Fibonacci tool to the top of the possible reversal at 15.16524 and dragging it to the bottom of the pullback at 14.63751, the following targets may be considered. The first target can be anticipated at 15.49138 (161 %). The second price target can be predicted at 16.01911 (261.8%) and the third and final target may be expected at 16.87297 (423.6%).
If the support level at 14.63751 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as bullish sentiment prevails and demand overcomes supply, the outlook for the Silver Market on the D1 time-frame will remain positive.