Is silver forming a negative technical pattern?
(Kitco News) - The silver price has recovered over the last two sessions. The price could now be forming a reversal pattern after a decent run since 3rd February. Recently the price peaked at $27.49/oz on 8th March and since then a new lower high lower low pattern has formed.
Looking closer at the technicals, on the 4-hour chart below the price might be forming a head and shoulders top. This is not the only reason that prices might reverse as the purple horizontal line is also a resistance. Lastly, the upward sloping pink trendline which has been broken is about to be retested which can also be a resistance point.
|Hawkish Powell: U.S. economy 'can handle' six more rate hikes|
The market will get confirmation of this pattern if the wave low at $24.58/oz breaks on the downside. This is also a support area marked by the green zone. Another point to watch would be the volume in the sell-offs. If the volume increases as the price moves down it could be a confirmation sign that the market is backing the price to move to lower levels.