Silver Technical Outlook
- Silver is about to confirm a breakout from an inverse H&S pattern
- If confirmed, looking for 28 to 30 relatively soon
Silver appears poised to rally
Silver is in the process of confirming an inverse head-and-shoulders pattern. If it can close strong today, above 24.87, then it will confirm a break of the neckline of the pattern and point to a rally in the weeks ahead.
The first level up it will need to contend with is the 200-day moving average at 25.35. The big target here is the measured move target based on the depth of the formation that suggests silver could trade up to 28. This level aligns with resistance from 28 up to 30.
To turn the outlook bearish (assuming a valid trigger today or in the days ahead), we would need to see silver reject firmly below the neckline, and even break the upward trend-line off the head of the pattern created in late September.
Silver Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
