Silver Heading for Major Test
Silver broke out in impressive fashion from a 4-week old falling wedge on Friday:
It’s no coincidence that the measured move from the falling wedge breakout targets the $18.50 area which also happens to be major long-term support/resistance. Lets take a look at the weekly chart to put the major test that silver is facing into perspective:
Silver has not closed above its 50-week simple moving average (currently at $18.58) since July 2014 which adds even more significance to the $18.50 support/resistance level. Moreover, a clean breakout above $18.75 would also complete a 6-month+ rounding bottom pattern which would target a move up to the upper end of the massive volume-by-price bar that extends all the way up to $20.50.