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Silver Pulls Back to Price Bottom after Breakout

Silver has been consolidating for a week roughly between 19.32 and 19.60. The rally during the 8/28 session was sharp and established this past week's price action as a bottom. Then, after tagging 19.90, silver price retreated back to 19.50

(silver 1h chart 8/29)

The 19.50 level is key because it is where the cluster of 200-, 100-, and 50-hour simple moving averages reside. The bullish outlook in the short-term would be bolstered if price can hold above 19.50. Also note that the 1H RSI has tagged 40 after pushing above 80. If the RSI can hold above 40, the bullish momentum is maintained. So far, the price bottom looks promising as silver price bounced off 19.50.

When you look at the 4H chart you can see that price not only formed a bottom, but is also breaking above a falling trendline that originated from the 21.57 July high. We can also see that the RSI has tagged 70 which killed the bearish momentum and established bullish momentum.

(silver 4h chart 8/29)

If price can hold above 19.50, silver looks bullish in the short-term, with upside toward the 20.10-20.20 area. This area contains a previous consolidation high and the 200-period SMA in the 4H chart.

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