Silver futures hit tactical upside targets

We flagged a potential tactical breakout for silver futures in our Monday, November 10 blog. Silver quickly confirmed this view by breaking out of its tactical triangle on a move above 49.00–49.23 after defending its rising 40-day moving average as support on a bullish engulfing pattern and bullish hammer (October 29 Straight from the Chart). On Wednesday and Thursday, silver futures tested key breakout objectives at 52.40 (pattern count) and 53.77 (October high) before forming a long-legged doji and bearish harami pattern yesterday.

Chart 1: Silver futures: Daily candlestick chart with moving averages

Silver: Watch key retracement levels from 51.01 to 48.91 on a dip

If silver reacts bearishly to Thursday’s long-legged doji and the Wednesday–Thursday harami pattern, the next step is to monitor retracement levels for the October 28–November 13 advance at 51.01 (38.2%), 49.96 (50%), and 48.91 (61.8%). A pullback into this zone would represent a normal, healthy correction within an ongoing uptrend. The rising 26- and 40-day moving averages, currently at 49.43 and 48.44, continue to support silver’s bullish trend. Stay tuned…

Chart 2: Silver futures: Daily candlestick chart with moving averages