Critical Moment for Silver: Testing Key Resistance Post-Breakout

The situation on silver is currently very clear and technically significant, presenting a pristine setup. We have a well-defined head and shoulders pattern with the left shoulder, head, and right shoulder marked within orange rectangles. This pattern’s neckline is indicated by a yellow line. Yesterday, the price broke below the neckline, and today, it is testing this neckline as a resistance—a common occurrence in head and shoulders formations. The outcome of this test will be crucial.

If the price breaks back above the yellow neckline, it would invalidate the head and shoulders pattern, creating a strong buy signal. Conversely, if the price bounces off the yellow resistance, it would confirm the head and shoulders pattern, signaling a sell with potentially significant bearish potential. The profit target in such a scenario could be much lower than the current price, making it an attractive setup for traders.

The market’s response to this resistance test will provide clear directional cues. Traders should watch for a breakout to the upside, indicating a buy, or a bounce off the neckline, indicating a sell, with substantial profit opportunities either way.

Source: https://www.axiory.com/analytics/technical-analysis/critical-moment-for-silver-testing-key-resistance