Silver Is Retracing

Silver is clearly currently retracing after forming a spinning top candlestick above the support at 15.15 on the four-hour time-frame and bouncing off from it. The pair may have found some resistance at 15.60 and has formed another spinning top below it on the same time-frame, so there will likely be a move to the downside, probably towards 15.30, but the retracement will likely continue once that is over. Its target is likely at the resistance at 15.70 which is the (MA)89 indicator on the four-hour time-frame again. If the precious metal breaks out above that level it will probably continue moving to the upside towards 16.00.

Silver Is Testing the Support at 15.60

As it is obvious from the weekly time-frame chart, Silver has been stuck in a wide consolidation for well over a year now. The precious metal has been testing the support at 15.60 several times now and it has bounced off from that level every time. It is currently testing it again and considering how bearish it is it may finally break out below that support. If it does, the next obvious support should likely be at 15.10, which is the last low of that consolidation. A breakout below that level in turn could lead to a further move to the downside towards the last low, which is at 13.75, but that is obviously a long-term target.

Silver May Bounce off from 16.55

Although the wide long-term sideways consolidation of Silver obviously continues and so far there is no indication that will end anytime soon, there are still signals one can make use of if they notice them on time. For example, Silver has obviously reached the (MA)89 indicator on the daily time-frame yet again and considering many past occurrences it will likely bounce off from that resistance, which is now at 16.55. That is also confirmed by the shooting star candlestick the precious metal has formed on the four-hour time-frame around that level. If that happens, there will probably be a move to the downside towards the support at 16.10, which Silver has already tested many times over the course of the consolidation.