Silver's Triangle Test: Buy Signal or Warning?
27 November 2023
Silver's recent performance has been noteworthy, particularly during the previous week, which turned out to be a pivotal period. This analysis employs a weekly chart, offering a broader perspective on Silver's long-term trajectory. The chart reveals a significant pattern – a symmetric triangle, delineated in red. Currently, Silver is on an upward trajectory, targeting the upper boundary of this formation.
This bullish momentum is anchored in a recent breakout from a flag pattern, which is outlined by black lines. This breakout, which occurred last week, catalyzed a mid-term buy signal. As a result, Silver is presently under the influence of this bullish signal, and the likelihood of the price reaching the red line of the triangle seems promising.
What unfolds next is the key question. A potential rejection at this resistance line, marked by the formation of a shooting star or a bearish engulfing pattern, could signal an opportunity to enter short positions. Conversely, if Silver manages to breach this line and sustains a weekly close above it, it would represent a strong bullish signal, indicating a viable long position.