Silver prices are currently breaking above the $24.00 resistance level, following a major move higher by precious metals in the subsequent days after the Federal Reserve interest rate decision.
After the Bank of Japan recently made a policy pivot precious metals have also surged. This is because the US dollar is starting to come out of favour. The safe haven element is also in play.
The shiny-metal has broken through many meaningful resistance levels recently, including its 200-day moving average. Not much resistance is seen until the $26.00 area.
With Gold is also breaking out silver has significant tailwinds to help it push forward. The yellow metal is once moving above the $1,800 resistance level towards new multi-month highs.
Current sentiment metric towards silver show that traders are still bullish towards the price of silver. The ActivTrader market sentiment tool shows that 88 percent of traders are bullish towards silver.
With this one-way sentiment bias it is very bullish for silver price as retail buyers are dropping. Retail have been betting on silver price going up for many years now.
Potentially, the difference with this latest run higher is that silver has flushed out many buyers this year as it dipped towards the $17.70 level and spent many months on the doldrums.
Silver short-term Technical Analysis
The short-term technicals for the shiny-metal shows that a series of head and shoulders pattern has been invalidated, and that silver is going to start its next major up move anytime soon.
Looking more closely at the headline break, we could probably expect more upside towards the $26.00 area if silver price holds above the $24.00 level.
Bearish MACD price divergence is also seen towards the $22.50 level. The divergence may unwind if a break under the $23.80 level happens.
Silver Medium-term Technical Analysis
The daily chart shows that silver price is looking promising over the medium-term horizon while they hold above the bottom of its 2-year trading range, located around the $21.30 price level.
It is also noteworthy that silver has formed a very large, inverted head and shoulders pattern and recently activated it. It is possible we could see a run towards the $28.00 area with ease and maybe even $30.00.