Silver is starting to firm above the $18 support level as the technicals surrounding the metal appear increasingly bullish.
Silver price technical analysis shows that the metal could start to rally towards the $20 resistance level over the medium term.
Silver medium-term price trend
The silver price recently rallied towards the $18.40 technical area, marking the highest trading level for the metal since mid-February this year.
Traders have been buying any meaningful dips below $18 in anticipation of further medium-term gains.
Silver technical analysis over the medium term shows that bulls are targeting the 2019 trading high, around the $19.60 level.
Looking at the daily time frame, a large inverted head-and-shoulders pattern with more than $7 of upside potential will form if silver reaches the $19.60 level.
Upcoming resistance for silver above the current monthly trading high is located around the $18.67 and $19.00 levels.
Silver short-term price trend
Silver price analysis over the short term shows that the metal has a bullish short-term bias while the price trades above the $17.66 technical level.
The four-hour time frame shows that a head-and-shoulders pattern has recently been invalidated, following the break above the June monthly trading high.
According to the size of the invalidated head-and-shoulders pattern, silver prices could rally towards the $19.80 resistance level.
It is possible that silver prices could overextend to the upside, and test towards the psychologically important $20 level.
Overall, watch out for the next major upside breakout if buyers can force a breakout above the $18.45 level.
Silver technical summary
Silver price technical analysis shows that silver could be preparing to rally towards the 2019 trading high. The $19.60 level remains a likely bullish target over the medium term.