Shooting Star Formation Hints at Potential Silver Downturn
30 September 2024
In the previous week, gold hit new all-time highs, and silver has been trying to follow suit, though struggling more significantly in comparison. Despite its struggles, silver managed to reach new long-term highs last week. However, this may be the beginning of a bearish sentiment. On the chart, we see a shooting star candlestick formation marked with a blue rectangle, indicating a rejection of the key resistance level, marked in green. This resistance stems from the top in May, and the shooting star highlights the market's reluctance to move higher.
This rejection of the resistance suggests a potential bearish move ahead, with the likely target being the red uptrend line. However, an alternative view would be if the price were to break above the green resistance. In that case, a daily close above this level would signal a strong move to go long. That said, the bearish scenario appears slightly more probable given the current technical indications.