Silver futures remain precariously balanced at a major support level near $33.00 per ounce as another volatile trading week draws to a close. The choppy sideways trade has organized into a well defined Channel Up chart pattern, shown here on the Autochartist 60-minute time interval.
This Channel Up has already triggered a breakout to the downside, indicating it may be a continuation pattern of the first sell-off from above $34.00 per ounce. The formation ranks well in terms of Initial Trend, Uniformity, and Clarity, giving it an overall Quality rating of 7 bars.
The breakout came amidst a soft retest of the channel support near $33.15, and the market has formed a temporary consolidation zone just below that price. With Silver futures now trading marginally back inside the channel, it will take one more push lower to confirm the breakout and increase the probability of reaching the downside target.
If the selling pressure resumes, the projected price target is forecast in a range between $32.77 and $32.26 per ounce. A firming of the market at this level could negate the bearish signal, with a resumption of channel-bound trading in the near term.
For further information on this and other Autochartist products, visit our website at www.autochartist.com