If you’re trading precious metals these days, make sure you have this silver reversal setup on your radar!
Will the downtrend be over soon?
Here are the breakout levels I’m watching:
It looks like an uptrend is brewing for this commodity, as price has formed an inverted head and shoulders on its hourly chart.
So what are bulls waiting for?
Resistance around the neckline and descending trend line seems to be holdin’ like a boss so far, and Stochastic is reflecting overbought conditions.
Turning lower would mean that sellers are still in the game and might even take silver back down to the recent lows.
That fresh bullish crossover suggests otherwise, though!
The 100 SMA is making its way above the 200 SMA to hint that buyers are about to regain the upper hand soon, possibly taking XAG/USD past the area of interest at $22.00. If that happens, the precious metal might be in for a rally that’s the same height as the chart pattern.
Also note that silver is already trading above both moving averages, so these could hold as dynamic support levels on dips.
Will it follow the same path as gold and take advantage of risk-off flows?
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