Silver – Bullish Technical Patterns on the Daily Chart
The technical outlook for silver is turning increasingly positive and suggests that the recent $32.50/oz. multi-year high will soon come under pressure. A longer-term bullish trend, combined with a medium-term bullish flag and a short-term bullish pennant makes a compelling, technical, case for higher prices in the coming weeks.
The daily silver chart shows three, distinct, bullish set-ups that suggest that XAU/USD is going higher in the coming weeks. The trendline from early February remains in place, despite the slight underperformance in late June/early July and continues to push silver higher.
Introduction to Basic Trendline Analysis
The second pattern on the chart is a Bullish Flag set-up, a continuation pattern that is seen as a pause in a trend before a secondary move higher. This pattern has already seen a break above flag resistance and suggests a further move higher.
How to Trade Bullish Flag Patterns
The latest technical pattern on the daily chart is a short-term Bullish Pennant set-up, another closely followed continuation pattern. A break higher would leave the multi-year high at $32.51/oz. vulnerable.
Pennant Patterns: Trading Bearish and Bullish Patterns
In addition to the above, all three simple moving averages remain in a positive set-up, while the CCI indicator is showing silver coming out of extreme overbought territory.
Silver Daily Price Chart
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