After Silver broke below the $20.00 mark and 61.8% retracement level between $18.64 and $22.16, the bearish swings slowed down and eventually stopped altogether. The last four business days have formed a range in the shape of a triangle formation.
The resistance of the triangle was confirmed by the 200 Moving Average on 1H and the 50 Moving Average on 4H timeframe. The triangle break-out and the move back above the $20.00 level indicates Silver will be searching for a lower high in the coming days.
Silver’s search for a high should lead towards $20.55/60, where buyers will find the first resistance in a confluence between the 38.2% Fibonacci retracement and a price pivot zone from March.
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Prepared by Alexandru Z., Chief Currency Strategist at Capital Trust Markets