The current trend in silver is showing resistance at a key trendline in the $30s. The market has been indecisive with several Doji-like candlestick patterns appearing in recent days. However, the overall trend since early August has been upwards, indicating a potential for an extension of the uptrend. To confirm a breakout, silver would need to make a decisive break above the trendline and reach $32.94, the 0.618 Fibonacci ratio of the extended C leg.
A decisive break would involve a strong confirmation signal such as a long green candlestick closing near its high or three consecutive candlesticks breaking above the level. Although there have been several Doji candlesticks forming, there has been no clear reversal pattern suggesting a correction lower. It is too early to predict a reversal until a more significant confirmation appears.
Silver could also potentially be completing a Measured Move price pattern from the August 8 low, which typically consists of three waves in a zig-zag pattern. The similarity in length between waves A and C indicates a possible pause or pullback in prices. This suggests that silver may need to rest or retrace before continuing its bullish momentum.
In conclusion, silver is currently facing resistance at a trendline in the $30s, leading to a period of market indecision. The overall trend since early August has been upwards, indicating a potential for further uptrend if a decisive break occurs. Confirmation signals will be crucial in determining the direction of the market, as well as monitoring for potential patterns such as Measured Move price patterns. Traders should remain cautious and wait for clearer signals before taking any significant positions in the silver market.
