Silver Technical Analysis: Positioned to Rally
Silver Technical Analysis:
- Treading water between neckline of H&S pattern and 200-day
- Should start to rally soon, 28-30 targeted down the road
Silver is stuck between the neckline of the inverse head-and-shoulders pattern it just broke out of and the 200-day moving average. The consolidation period should end soon, but we will want to see a solid close above the 200-day MA before becoming bulled up too much further.
The size of the H&S formation suggests it could rally to major resistance between the 28 and 30 level. There won’t be cause for real concern unless we see drop back below 24 and the trend-line that connects the head and right shoulder.
For now, staying the course with a bullish outlook.
For the full set of details, please check out the video above…
Silver Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.