Major range break expected: Silver technical analysis
Silver technical analysis suggests that bulls need to reclaim the $18.00 level this week to stabilize the metal over the short-term. A break under the $17.50 could spark a wave of fresh bearish bets towards silver.
Silver prices have been moving in a tight range over recent days, as traders and investors still remain undecided whether the metal is headed higher or lower from current levels.
Silver price technical analysis shows that a major directional move will occur once the $17.50 to $18.00 price range is broken.
Silver medium-term price trend
Silver prices have remained robust on any moves lower this month, with traders still using pullbacks towards the pivotal $17.50 level as a buying opportunity.
Last week silver found strong buying interest from the $17.40 level, with the rebound so far extending towards the $17.90 level.
Silver technical analysis over the medium-term shows that a triangle pattern is forming, with the price now coiled in between the $17.50 to $18.00 levels.
The daily time frame shows that silver prices could rally through to the $18.60 level if the $18.00 level is breached, while a move under the $17.50 level could provoke a sell-off towards the $17.00 level.
It is noteworthy that extended trendline support on the mentioned time frame is highlighting the $16.80 support level as a potential bearish target if the $17.40 level is breached.
Silver short-term price trend
Silver price analysis over the short term shows that a bearish head and shoulders pattern has formed across the lower time frames.
The neckline of the bearish pattern is located around the $17.73 level, with the downside projection of the pattern just over $1.00.
With this in mind, traders will closely monitor the trading around the $17.73 level this week, with a break under last week's price low likely to trigger a wave of selling.
Short-term bulls do have their work cut out at present, as they struggle to reclaim the $18.00 level, it is entirely possible that silver price may need to head lower before they can go higher again.
Silver technical summary
Silver price technical analysis highlights that a major directional breakout should occur once the $17.50 to $18.00 range is broken. Short-term technical analysis warns that a bearish correction may be coming.