Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17
The Socionomic Theory of Finance By Robert Prechter - Book Review - 18th Jul 17
Ethereum Versus Bitcoin – Which Cryptocurrency Will Win The War? - 18th Jul 17
Accepting a Society of Government Tyranny - 18th Jul 17
Gold Cheaper Than Buying Greek Villas in 2012 - 18th Jul 17
Why & How to Hedge the Growing Risks of Holding Stocks - 18th Jul 17
Relocation: Everything You Need to do for a Smooth Transition Abroad - 17th Jul 17
A Former Lehman Brothers Trader: It’s Time To Buy Brick And Mortar Retailers - 17th Jul 17
Bank Of England Warns “Bigger Systemic Risk” Now Than 2008 - 17th Jul 17
Bitcoin Price “Deja Vu” Corrective Sequence - 17th Jul 17
Charting New Low in Speculation in Gold and Silver Markets - 17th Jul 17
Bitcoin Crash - Is This The End of Cryptocurrencies? - 17th Jul 17
The Fed's Inflation Nightmare Scenario - 17th Jul 17
Billionaire Investors Backing A Marijuana Boom In 2017 - 17th Jul 17
Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - 17th Jul 17
Gold and Silver Biggest Opportunity Since Late 2015, Last Chance at These Prices - 17th Jul 17
Stock Market More to Go - 17th Jul 17
Emerging Markets & Basic Materials Stocks Breaking Out Together - 16th Jul 17
Stock Market SPX Uptrending Again After Microscopic Correction - 15th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

Uptrend in Silver (XAG/USD) Continues to Strengthen

Commodities / Gold and Silver 2017 Feb 11, 2017 - 05:58 PM GMT

By: MarketsToday

Commodities

Spot silver (XAG/USD) closed strong last week (17.93), near the high of the week (18.00), as it continues to push up against the top trend line of a relatively well constructed ascending channel. It has been in a rising trend channel for the past seven weeks, ever since hitting a bottom at 15.64 in December. As of last week’s high, silver was up 15.1% off that December low.


Uptrend strengthens
That bottom completed a higher swing low relative to the seven-year low of 13.65 reached in December 2015 (see Weekly chart below). Therefore, it’s another sign that the prior long-term downtrend is turning into an uptrend and that it could keep advancing for some time. Regardless, it does support an argument for a continuation of the seven-week rally.

Multiple bullish signals for seven-week uptrend
Other bullish indications for the seven-week uptrend include the following:

  • Breakout of Head & Shoulder Bottom trend reversal pattern two weeks ago
  • At the same time breakout of both the 200-day exponential moving average (ema) and internal downtrend line (begun from the December 20.05 peak), thereby further confirming change in trend
  • Decisive rally above the December 2016 swing high, which defined the prior downtrend
  • Uptrend confirmed with a higher swing high and higher swing low in place
  • Breakout above the confluence of the 21-week ema and 55-week ema
  • Bullish moving average crossover of the 21-day ema above the 55-day ema

Weakness should find support
Support has been found at the center line of the channel for much of the uptrend and that continues to be the case. Once that line is broken the support should be seen at the lower uptrend line. Of course the price represented by the line will vary depending on when it is reached. More specific price areas to watch for support include the prior swing high resistance of the previous downtrend at 17.24. As silver rallied off the December low it hit resistance around that peak and the advance was stalled for nine-days. Resistance was defined as a range from approximately 17.21 to 17.33. On the way down silver should find support around that price range if not higher. Also within that price range is support of the 200-day ema at 17.28.

Target areas
There are a couple high probability target areas noted on the chart above as these price zones are identified in several ways.

  • First target zone is 18.34 to 18.41, consisting of the completion of a measured move or ABCD pattern (18.34), the 50% retracement of downtrend starting from July 2016 high (18.39), and a 61.8% Fibonacci retracement from the measurement of the internal trend, which starts at the September 2016 peaks (18.41).
  • Second target zone is 18.92 to 19.017, derived from the measuring objective of the Head & Shoulders Bottom (18.92), the November 2016 peak (18.98), the 61.8% Fibonacci retracement of the July 2016 downtrend (19.03), and the 78.6% Fibonacci retracement of the internal downtrend (19.17). (www.marketstoday.net/en/)

Bruce Powers, CMT
Chief Technical Analyst
http://www.marketstoday.net/

© 2017 Copyright Bruce Powers- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife