• Silver price has recovered after meeting the conservative target for a Bear Flag pattern.
• It is now threatening to reverse the short-term downtrend and begin a new uptrend. 
• A break above the May 7 highs at $27.51 would probably signal a bullish reversal of trend. 

Silver (XAG/USD) price is threatening to reverse the short-term downtrend it has been in since April 12 and begin a new uptrend. This is significant given the old maxim that “the trend is your friend” since a reversal of the trend would indicate a switch to a bullish bias, favoring longs. 

If Silver price breaks above the $27.53 May 7 highs it will probably increase the growing body of evidence that points to a reversal of the trend. Silver has risen strongly since it bottomed at the beginning of May; it has broken above the last higher low of the downtrend and breached both the 50 and 200 Simple Moving Averages (SMA). Bullish momentum has been strong during the up move. The MACD is now above the zero line and it formed a double bottom pattern during late April and May. When MACD forms a double bottom bullish reversal pattern it is often a sign the underlying asset price is also reversing. 

As such a break above the May 7 highs would probably usher in a new bullish trend and lead to a continuation higher to the next target at $27.74, followed by a target at around $28.80.