Pattern formation targets $20.00: Silver technical analysis
Silver technical analysis highlights that the latest move lower may be a minor technical correction before a powerful rally towards the $20.00 level takes holds.
Silver has experienced high levels of trading volatility of recent days, with the metal advancing towards the $19.00 level and then plummeting back below the $18.00 level.
Silver price technical analysis shows that the recent advance towards the $19.00 level has created a huge bullish pattern, which projects an upcoming rally above the $20.00 level.
Silver medium-term price trend
Silver has experienced substantial amounts of two-way trading action over recent days, as growing fears about the coronavirus provoked volatility in both gold and silver prices.
Silver technical analysis over the medium-term shows that a huge bullish reversal pattern, with $1.50 upside potential has formed on the daily time frame.
The daily time frame shows that if the price of silver could rally towards the $20.40 level over the medium-term if the $19.00 level is broken.
The pullback in silver prices towards the $18.00 level presents a strong dip-buying opportunity over the medium-term. The $17.70 and $17.50 levels are the key support levels bulls now need to defend.
Silver short-term price trend
Silver price analysis over the short term shows that bulls are in control while price continues to trade above the $17.90 support level.
The lower time frames currently shows that trendline support from a triangle pattern offers the strongest form of support below the $17.90 level, at $17.65.
Looking more closely at the recent decline, the $18.50 and $18.80 levels still have areas of previously untested supply and demand, which certainly hints that we may see a retest of these areas.
As long as bulls keep price above the $17.65 level, it appears that the latest decline towards the $17.80 level may be just a healthy technical correction within a major bullish trend.
Silver technical summary
Silver price technical analysis shows that a large bullish pattern has formed on the daily time frame. Bulls need to defend the $17.50 to $17.65 area to encourage a rally back towards the $20.00 level.