Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!
This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.
Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the breakout.
Since creating the large bearish reversal pattern, Silver lost all of its short-term rally. It is now testing the top of the old falling channel as potential new support at (2).
While it is testing potential support, it is also testing its 200-week moving average at the same price point.
The last time Silver tested the green falling channel as support was back in 2012, reflecting is been a long time since Silver bulls have experienced a support test!
Silver bulls want/need to see support hold at (2)! What it does here will most likely send an intermediate message to this precious metal.