Silver Price Analysis: The triangle chart pattern has been broken to the downside

Silver is trading 8% lower on Monday as the greenback kicks on.
There has been an interesting chart pattern which has now been taken out.

Rajan Dhall, MSTA FX Daily

Silver 4-hour chart

The greenback strength has hit commodities hard on Monday as most of the majors are lower. Silver, in particular, has had a tough session trading lower by over 8% at one stage. The dollar had been moving sideways for a while but after the Fed failed to provide the market with much confidence last week it seems the dollar bulls have jumped on board.

The key feature on the chart is the triangle pattern marked in black. Also, the red support area has been broken to the downside. Now it could be used as a resistance zone in the future. The next major support is at the blue line just above USD 22 per troy ounce.

The indicators have now turned bearish. The Relative Strength Index is now overbought and could pullback in the short term. The MACD is painting a very bearish picture, the signal lines and histogram are now under the zero level.

Overall, this looks like a major trend change. The market had been holding in a consolidation pattern but now the pattern has broken to the downside. If the price can break below USD 23 per ounce it would confirm the bearishness.

Additional levels

XAG/USD

Overview
Today last price	24.74
Today Daily Change	-2.03
Today Daily Change %	-7.58
Today daily open	26.77

Trends
Daily SMA20	27.09
Daily SMA50	25.45
Daily SMA100	21.36
Daily SMA200	18.97

Levels
Previous Daily High	27.23
Previous Daily Low	26.69
Previous Weekly High	27.63
Previous Weekly Low	26.3
Previous Monthly High	29.86
Previous Monthly Low	23.44
Daily Fibonacci 38.2%	26.9
Daily Fibonacci 61.8%	27.03
Daily Pivot Point S1	26.56
Daily Pivot Point S2	26.36
Daily Pivot Point S3	26.02
Daily Pivot Point R1	27.11
Daily Pivot Point R2	27.44
Daily Pivot Point R3	27.65

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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