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Is silver forming a negative technical pattern?

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(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.

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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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.