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(Kitco News) - Looking at the 4-hour silver futures chart the price is now testing the top of the wedge formation (marked in red). If there is to be a break higher the next resistance is at the green line near $20.54/oz.
Beyond that, there is a massive congestion zone at $21.45/oz and the psychological resistance at $21/oz. If the pattern fails to break the support is at the purple horizontal line near $1936/oz.
The general trend on this chart has been an up one since 14th July. The market has made higher highs and higher lows but this most recent pullback looks like a consolidation phase. In the U.S. session, any break out on good volume could indicate a longer-term move higher is on the cards.
Rajan Dhall
Rajan Dhall is a financial analyst that has been in the trading industry since 2009. From working in Canary Wharf (London) as a head trader to becoming a journalist on a real-time news desk, Rajan has worked his way through many positions in the financial sector. The main area of Raj's expertise lies in technical and statistical analysis. Rajan currently lectures technical analysis with the Society of Technical Analysts (STA) at the London School of Economics. One of the main areas Rajan has based his analysis on is probability. Raj completed his certification (probability) with Harvard and regularly uses probability theories in his analysis as he feels it helps him add value to his clients and customers.
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