Silver price has broken above the symmetrical triangle formation. What needs to happen next? Here’s what the charts are signaling…
While the silver price has broken above the symmetrical triangle formation, it still has a few key levels to surpass to continue its upward trend. However, it was crucial for silver to first break upwards rather than down from the symmetrical triangle to be able to move in a bullish direction.
So, we have to take one positive price action in silver at a time and look at the next technical levels. First, we can clearly see that silver broke upward above the Symmetrical Triangle formation:
We must remember, silver needs to close above the upper Symmetrical Triangle line by the end of July for it to be a Breakout. If you look at the monthly candlesticks in July & August 2016, while silver shot above the blue dashed line, it did not close above it. Actually, the silver price closed at the end of July & August 2016 right at the upper Symmetrical Triangle formation line.
Second, if silver can close above this upper Symmetrical Triangle line by the end of July, it would also have to push above the 50 Month Moving Average (MMA), shown in the chart below:
If you look at both charts, the silver price has not closed above the 50 MMA (BLUE LINE) since early 2013. Furthermore, each time silver tried to surpass the 50 MMA since 2016; it closed below it. So, the next important key level for silver is the 50 MMA at $16.22. If would need to close above this level for a bullish trend to remain.
And, once silver is able to close above the $16.22 (50 MMA) level, it will need to break the 200 Month Moving Average (Red Line) of $16.76. These are the two next important levels for silver to close above, ON A MONTHLY BASIS. Thus, silver needs to close at the end of July or August above these levels to be able to reach the MAJOR KEY BREAKOUT LEVEL of $21.35-$21.50.
I will be discussing this in detail in the upcoming Youtube video.
IMPORTANT NOTE: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.
If you are new to the SRSrocco Report, please consider subscribing to my: SRSrocco Report Youtube Channel.
I would also like to thank those foundation supporters, who have chosen to become a member by making donations through PayPal to further the research and publishing work at the SRSrocco Report.