Silver Price Analysis: Consolidating in a pennant pattern
- Silver is trapped in a pennant pattern, according to the 4-hour chart.
- A breakout would imply a resumption of the uptrend from lows near $19.
Silver is being squeezed in a narrowing price range for the eighth trading day. At press time, the metal is trading largely unchanged on the day at $24.31 per ounce.
The 4-hour chart shows the metal has carved out a pennant pattern.
A break above the pennant resistance, currently at $24.56, would confirm the breakout and signal a continuation of the rally from the July 17 lows near $19. That would expose the recent high of $26.20.
Alternatively, a pennant breakdown would imply bearish reversal and open the doors for a pullback to $22.25 (pennant low). Acceptance under that level would expose the psychological support of $20.
4-hour chart
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Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
