New Highs for Silver; Resistance ahead.

Gold and Silver usually perform in tandem; contrary to the current price moves in these precious metals. Both of these commodities remain heavily influenced by the U.S. Dollar price, with inverse correlation in between.

Let's take a look at 4H Silver chart to explore some trading opportunities.

Silver price is traversing within a very narrow ascending parallel channel, since last two months starting mid-December. It currently stands at 17.908 level. White metal has already broken upper resistance from diverging channel in daily chart, at around 17.60. Although it will face resistance soon at 18.00 key level (this is also intersection of upper parallel channel on 4H and upper slope line on daily). A further resistance beyond 18 price level exists at 18.299 (supply zone on daily chart). Given falling volumes, completed XABCD pattern formations and strong resistance, Silver is likely to reverse soon. On reversing, on 4H, Support exists at 17.50 (intersection of slope and parallel channel), below which Silver remains Supported around 17.23.

Wait for price to form consequent bearish candles on 4H to confirm reversal and then place a short trade with price target at Support and Stop Loss at Resistance outlined earlier, depending on risk appetite.


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