Talking Points
-
Silver Prices
May be Developing a Bullish Flag Pattern
- Short Term Support for Silver is Found Near $18.80
-
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The price of Silver (Ticker: XAG/
USD
) continues to slide this morning, bringing the commodity to key support near $18.80. This value marks support of a potential descending price channel forming for Silver
prices
. If prices remain supported here, it opens up price action to bounce back towards resistance. Channel resistance, as depicted below, has been created by connecting a series of swing highs beginning with the July 2016 high at $21.11.
One possibility, suggests that this descending channel is the beginning of a flag pattern. In this scenario, even though prices are currently trading lower, traders may wait for a bullish breakout back in the direction of Silvers primary trend. Traders looking for bullish projections for Silver prices may extrapolate a 1X extension of the markets previous rally. This places potential targets for Silver just under $24.00
Losing Money Trading?
This could be why
!
Silver Prices Daily Flag Pattern
Chart prepared by Walker England
Alternatively if Silver prices continue to decline, it may suggest that price action is returning back towards a longer term value of support. The Ascending trendline depicted below has been created by connecting a series of higher lows, beginning with the 2016 yearly low at $13.76. This places current trendline support near $17.00. If Silver fails to remain supported hear, it may suggest the beginning of a new bearish trend for the metal.
Are traders long or short the
market
Find out here
!
Silver Prices Daily Trendline
Chart prepared by Walker England
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