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2024-09-17 10:20:51 am | Source: Kedia Advisory
Silver Long Term Technical Report by Amit Gupta, Kedia Advisory
 Silver Long Term Technical Report  by Amit Gupta, Kedia Advisory

Silver

The quarterly chart of Silver shows three significant Rounding Bottom patterns: a 30-year, 14-year, and 4-year, all pointing to a robust long-term bullish outlook. The 4-year pattern, with a neckline at $30, is approaching a critical breakout. A decisive move above this level could push Silver towards the next resistance at $41.50, aligned with a 100% Fibonacci retracement. Further targets include $49.82 (127.2%) and $71.98 (161.8%) if the bullish momentum continues. Rising volume and price above the Ichimoku cloud confirm increasing market interest and uptrend strength. Silver remains bullish above the $22.50 support level (50% Fibonacci retracement).

Technical Highlights

*Three Rounding Bottom patterns were identified: 30-year, 14-year, and 4-year.

*Neckline resistance was observed at $41.50, with a smaller neckline at $30 for the 4-year pattern.

*Volume shows a consistent uptrend, signalling increasing market participation.

*Fibonacci levels confirm significant retracement and potential targets.

*Silver price is currently above the cloud, indicating an uptrend.

Silver

The quarterly chart of Silver reveals a robust long-term bullish formation with three clear Rounding Bottom patterns, spanning 30 years, 14 years, and 4 years. The largest of these, formed over the last three decades, reflects the overarching accumulation and consolidation cycle in Silver. The 14-year pattern, completed around 2020, aligns with a significant price recovery. More recently, the 4-year rounding bottom has formed, and prices are approaching a key breakout point. The $30 level, representing the neckline for the 4-year rounding pattern, is crucial. A decisive break above this could propel Silver toward the larger neckline at $41.50. Notably, this level aligns with the 100% Fibonacci retracement of the prior move, which suggests that surpassing it could lead to the next Fibonacci targets of $49.82 (127.2%) and $71.98 (161.8%) in long term as long as prices are above $22.50 which is 50% Fibonacci retracement. The use of Fibonacci retracement levels highlights key support and resistance zones, with Silver’s recent rally retracing beyond the 61.8% Fibonacci level at $26.99, which adds further bullish momentum. These retracement levels often serve as pivot points for traders, and a move beyond the 78.6% Fibonacci level around $33.38 would confirm the strength of the ongoing uptrend. Volume has been rising throughout the recent accumulation phase, confirming growing interest and market activity. This volume surge reinforces the potential for a strong breakout once Silver decisively clears the $30 mark.

Finally, Silver is poised for a major breakout, supported by long-term technical patterns and Fibonacci retracement levels. The price is currently trending above the Ichimoku cloud, affirming a bullish momentum. A breakout above the $30 neckline could drive Silver toward $41.50, while a sustained move above this could propel it toward $49.82 and eventually to $71.98, in the long term as long as prices are above $22.50 which is a 50% Fibonacci retracement based on key Fibonacci levels.

 

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