Consolidating Around Highs
Since that high silver has largely consolidated within the price range from the day the peak was reached on February 14. Note that high was reached on a Friday and the day ended with a bearish shooting star candlestick pattern. The low for that day was $32.07.
Silver dipped below $32.07 on the following day but since then trading has been retained within the price range of $32.07 to $33.39 from that day. Overall, the bearish implications from the shooting star candlestick pattern have not been realized.
20-Day MA Offers Key Trend Support
Since the 20-Day MA (purple) was reclaimed on January 28 that line has done a good job of identifying dynamic support for the near-term uptrend. There were two days following where silver dipped to test support around the 20-Day line. It did so again today, Monday, as the day’s low of $32.09 was close to 20-Day MA at $32.03.
Notice that buyers got more aggressive from today’s low, reflecting support. Given the reaction around the 20-Day MA it remains a key dynamic support indicator. A potential change in upward momentum would be indicated if there is a dip below that line that is followed by the price of silver staying below the line.
Weekly Bullish Trend
There is also a weekly low from last week at $31.92 that makes up the weekly uptrend of higher weekly lows that have been in place for four weeks. A pattern of higher weekly highs was in place for seven weeks until last week when there was a lower weekly high. Last week silver ended the weekly session in a relatively weak position in the lower half of the week’s trading range. There was also a weak weekly closing price shown two weeks ago as well.
A decisive decline below the weekly low at $31.92 would further confirm bearish implications following a drop below the 20-Day MA. Since the 20-Day line and the weekly low are relatively close to each other, a drop below the 20-Day MA may find support above the weekly low.
