Bulls still in control above $17.50: Silver technical analysis
Silver technical analysis points to more gains for the metal while price trades above the $17.50 level. If financial markets fears over the coronavirus start to increase, silver could rally back towards the $19.60 level.
Silver prices bounced sharply from the $17.50 level last week, following the recent bearish reversal from the $18.30 resistance level.
Silver price technical analysis suggests that the increasingly popular metal has the potential to rally back towards the 2019 high while trading above the technically important $17.50 level.
Silver medium-term price trend
Silver price started to move lower last week after sellers forced the metal lower from the $18.30 technical region.
Silver price analysis shows that bulls still have the upper hand while price trades above the $17.50 level, and could launch an attack back towards the $18.30 level this week.
Fears over the coronavirus have yet to fully impact gold or silver prices, although that could change at any time if the situation in China continues to worsen.
Gains above the $18.30 level will be extremely bullish for silver this month, and could set up a possible advance back towards the 2019 high, around the $19.60 level.
A bullish inverted head-and-shoulders pattern will form if silver prices do reach the $19.60 level, with the upside potential of the pattern extending towards the $23.00 level.
Watch out for the uptrend in silver to remain intact while price continues to trade above the $17.50 level.
Silver short-term price trend
Silver technical analysis over the short term shows that bulls are only in control while the metal trades above the $17.75 level.
The lower time frames are currently showing that silver is trapped within a falling price channel. The upside projection suggests that silver could rally towards the $18.30 level.
Gains above the $18.10 level this week should confirm a breakout from the pattern, and could encourage silver bulls to try to break the January high.
Watch out for further short-term gains in silver while price continues to trade above the $17.75 level.
Silver technical summary
Silver price technical analysis highlights that the $17.50 level remains critical to the upside potential of the popular metal over the medium term. A rally back towards the $18.30 level is certainly possible this month.