Are my eyes deceiving me or is this a reversal pattern forming on the 4-hour time frame of silver?
I see what appears to be a complex double bottom or what could be an inverted head and shoulders formation.
Anyway, check out this resistance area being tested!
Silver (XAG/USD) 4 hours Chart by TradingView
While gold has already hit record highs this week, silver still looks to be struggling to break through that strong ceiling near the psychological $30,000 level.
This is the neckline of a mysterious reversal pattern on the 4-hour time frame, so a move above this resistance area could pave the way for a rally of the same size as the formation.
Is XAG/USD about to bounce or crash then?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on silver and market sentiment, it’s time to check out the economic calendar and stay up to date with daily fundamental news!
Note that the 100 SMA is above the 200 SMA indicating bullish vibrations, and silver is trading above both moving averages, so these levels could form dynamic support if the R2 level ($29.761) keeps gains under control.
Continued bullish pressure beyond current levels could push silver to the next upside barrier at R3 ($30.342) or even R5 ($31.505) near the July highs.
Don’t forget to practice proper risk management and stay aware of top-tier market triggers when trading this product. Good luck!