Can Silver Continue its Bullish Charge Through October?
18 October 2023
The silver market is witnessing some captivating dynamics as we advance through October. While the month might have commenced on a somber note with silver languishing at local lows, the subsequent days have been nothing short of spectacular for this precious metal.
Taking a closer look at the technical landscape, silver has demonstrated remarkable resilience by clawing its way back above pivotal support levels. The first being the long-term trend line, vividly marked in red, which has long been a benchmark for silver traders. And then, we have the $22.2 horizontal support, highlighted in yellow, further bolstering the metal's bullish momentum.
Interestingly, the prior breach below these supports seems to have been a deceptive move — a classic false breakout. This phenomenon can often trap traders on the wrong side of the market, making the recent recovery even more noteworthy. As silver steers clear of these pivotal zones, a compelling buy signal has emerged on the charts, presenting potential opportunities for the discerning trader.
Further adding to the bullish narrative is silver's decisive breach above a series of black downtrend lines, both short-term and mid-term. This trajectory now puts it on a collision course with the green downtrend line, a line that traces its origins back to May 2023. As the metal marches ahead, it's not too ambitious to expect it to test this line in the near term.