Silver futures held steady in Tuesday's trading session following a short-term technical breakout on good momentum. The market had formed a narrow trading range to form the Triangle chart pattern illustrated here on the 30-minute time interval.
While follow-through from the initial rise above the Triangle's resistance band at $41.10 has not yet materialized, the minor pullback towards the close of the session leaves the rising price trend intact for a possible resumption of the move.
The projected price forecast from the breakout shows a rise to a minimum of $41.73 per ounce, with the higher end of the possible range seen at $42.46 to complete the pattern, However, renewed weakness in Wednesday's trading would greatly reduce the outlook for this pattern and set the tone to modestly bearish in the near term. If the price does fall significantly back below the resistance level, a retest of the support at $40.30 per ounce would be the next downside level to watch. Despite the recent rise in volatility and bouts of selling pressure, the overall technical outlook for the bullish trend in the precious metals remains firm.
For further information on this and other Autochartist products, visit our website at www.autochartist.com