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Until shown otherwise, silver remains within a developing uptrend that began from the December swing low at $28.75. A series of higher swing highs and higher swing lows followed until last week. A lower swing high shows weakening demand and it is warning of a potential bearish pullback within the rising trend. The 50-Day MA at $31.25, along with a rising trendline, mark potential support for the trend.<\/p>\n
At the end of last year silver reclaimed the 50-Day MA and it remained above the line until a successful test of support late-February. That drop to the 50-Day line established a higher swing high at $30.81, which is part of the price structure of the uptrend. It is also support for February. Therefore, it marks a key support level as a sustained decline below that swing low signals a possible bearish reversal of the current near-term bull trend.<\/p>\n
The weekly pattern in silver shows consolidation as last week\u2019s price range was inside the range of the previous week. Therefore, potential weekly support is at last week\u2019s low of $31.12. Furthermore, the 200-Day MA is at $30.54 currently. It has not been tested as support since the end of last year. Nonetheless, February\u2019s low $30.81 would be reached before the 200-Day MA and a drop below it would trigger a monthly breakdown. Moreover, February ended with a bearish shooting star candlestick pattern.<\/p>\n
On the upside, a decisive rally above today\u2019s high of $32.67 will show strength. But until last week\u2019s high at $32.77 is exceeded, the potential for lower prices first remains. The recent February swing high at $33.39 marks potentially significant resistance given the monthly bearish candle that formed. This will make a successful test of support near the 50-Day line more significant, as a deeper pullback could trigger the long-term monthly chart.<\/p>\n