Anticipation continues to build in the Silver futures this week, as technical traders await signals from the market on which way it may break from the current price range. The $28.00 per ounce handle has provided support since the sell-off from $32.00 at the start of the month, and the recent trading action is forming into a very clean Descending Triangle chart pattern.
Currently the futures are pushing to the upper end of the pattern, but stalled out in Wednesday's session to suggest a possible retracement back to retest support, drawn here by Autochartist near the $28.75 price level.
This is a relatively fast developing chart pattern, and he breakout from the pattern on the 15-minute time interval is likely to come by the end of the week. Though it is too soon to establish direction or project price targets, a breach of either support or resistance outside of the Descending Triangle is likely to set-up a short term trading opportunity. Once a breakout signal is initiated, the ensuing price movement may very well establish a direction for a longer term trend.
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