Head and Shoulders Pattern Puts Silver at a Crossroads

In today’s technical analysis, silver takes center stage as it navigates a pivotal moment on the chart. The red area clearly illustrates a textbook head and shoulders pattern, which is now approaching a critical decision point at its yellow neckline. The resolution at this level will likely determine the long-term trajectory for silver.

Currently, the price is testing the neckline, and buyers’ hopes hinge on their ability to defend this level. If the price manages to hold above the neckline, it could set the stage for a bullish recovery, with the next key target being the orange horizontal resistance. A breakout above the orange resistance would invalidate the head and shoulders formation entirely, flipping the long-term outlook to bullish.

However, should the price close below the yellow neckline, it would confirm the bearish head and shoulders pattern and signal a strong long-term sell opportunity. This bearish confirmation would likely overpower even the black-up trendline, which has provided support in the past. A daily close below the neckline would indicate a significant shift in sentiment, with potential for further downside in the weeks ahead.

The key lies in how silver resolves this test of the neckline. Will buyers muster enough strength to stage a rebound, or will the neckline give way, paving the path for a deeper bearish correction? As always, traders should wait for confirmation at the close to position themselves effectively.

Source: https://www.axiory.com/analytics/technical-analysis/head-and-shoulders-pattern-puts-silver-at-a-crossr