- Silver's pullback from the recent high of $18.38 has taken the shape of a bull flag.
- A flag breakout is needed to restore the bullish trend from lows seen in May.
Silver looks to have charted a bull flag pattern on the daily chart.
A bull flag is a brief pause (pullback) that occurs following a notable uptrend in price and usually ends up accelerating the preceding bullish move. Hence, it is known as a bullish continuation pattern.
A daily close above the upper end of the flag, currently at $18.01 is needed to confirm the breakout. That would open the doors to $21.35 (target as per the measured move method). On the way higher, however, silver may encounter resistance at $18.19 (June 10 high) and $18.38 (June 1 high).
Alternatively, prospects of the bull flag breakout would weaken if sellers establish a strong foothold below $16.96, the low of the long-tailed daily candle created on June 15. At press time, silver is trading at $17.37 per ounce.
Trend: Bullish above $18.01
- R3 17.98
- R2 17.83
- R1 17.6
- PP 17.46
- S1 17.23
- S2 17.09
- S3 16.86
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