According to the technical analysis from Bryan over at pitchforkplayground.com, silver is looking quite bullish. His analysis is based on the Andrew’s Pitchfork methodology, in which pitchforks are calculated based on chart structures. Silver has surged higher in the past week along with gold. Unlike gold, silver has broken above its 200 day exponential moving average instead of being stopped by it.
In general, the intersection of two median lines in a pitchfork formation are an ‘energy point’ or ‘price magnet’ since price is often pulled into these areas. Silver is currently being drawn towards one of these points (red ellipse) that happens to coincide with the $18.00 round-number. With MACD in bull mode (both lines above zero) and rising bullishly on a buy signal, hitting this energy point seems like a given.
