Channel Recovery Targets Come into Focus
Silver’s bull trend reached an exhaustion peak of $121.67 in late January. That led to the current bearish correction, which has taken the form of a relatively wide falling trend channel. The low of the correction was at $61.01 in March, with the price of silver down by $60.57 (or 49.9%) at that point. Since an area of long-term trend support has been successfully tested, the upper boundary of the channel now becomes a potential upside target if the recovery continues to gain traction.
On the way there, the 20-day moving average near $72.46 is the first area where resistance may emerge. The 50-day moving average follows near $75.48 and it is aligned near the midline of a large rising trend channel. Based on price structure, the minor lower swing high at $78.83 is the first distinct level that would provide a modest bullish reversal signal if recovered.
Nonetheless, given the significance of the current support zone, it would not be surprising to see further testing of support before demand improves noticeably. Such behavior would be consistent with the recent successful defense of long-term support and could ultimately help establish a stronger foundation for the sustained bullish recovery first signaled by the reclaim of the 200-day moving average.