Silver (XAG/USD) is hinting at a possible shift in its short-term direction after decisively breaking above the key resistance level of $27.51 on May 7th.

• Trend Reversal in Sight? The adage “the trend is your friend” holds weight here. The break above resistance suggests a potential transition from a downtrend to an uptrend, favoring long positions over short ones.

Bullish Momentum:

• Higher Highs, Higher Lows: Silver has exhibited a clear uptrend since its May lows. It has surpassed the previous higher low of the downtrend and breached all key moving averages (50, 100, and 200-day SMAs).
• Strong Uptrend: The up move has been accompanied by strong bullish momentum, with a sequence of higher highs and higher lows.

Potential Targets:

• $27.74: This first upside target has nearly been reached.
• $28.80: This target zone aligns with the consolidation area that formed the multi-head and Shoulders pattern in April.
• $30.00: A retest of the long-term range highs becomes a possibility if the uptrend persists.

The breakout above resistance signals a potential continuation higher for Silver. While the first target is almost achieved, further confirmation of the uptrend will depend on price action around the $28.80 zone and a sustained move above that level.