Is Silver's Dual Support Ready to Hold or Fold?
14 September 2023
Greetings traders! Amidst the recent buzz surrounding the ECB's interest rate decision, it's easy for other commodities to slip under the radar. However, today, we shift our gaze to silver. Despite the flurry of activity around the Euro, silver stands poised at a pivotal point that deserves attention.
Silver, for the most part, has been ensnared in a sideways trend, exhibiting characteristics of a symmetric triangle pattern. This pattern is framed by a red line serving as support and a black line delineating the resistance. As August drew to a close, silver made a brief flirtation with the resistance but has since embarked on a downward trajectory. Fast forward to today, and we find silver teetering on the brink of its support.
But this isn't just any regular support; it's a convergence of two significant lines. First, there's the dynamic red line offering support. Additionally, a horizontal green line, linking the lows of August and June, reinforces this support zone. A resurgence from these support lines, marked by a hammer candle or a bullish engulfing pattern, could herald an enticing long entry opportunity. Conversely, if silver were to breach these support lines, culminating in a daily close beneath the green zone, it would potentially unlock a compelling short position. The coming days are crucial, and they will undeniably shed light on silver's next move.