Silver is testing the flag and a rising wedge
Silver is testing 25.86 a strong upside EXTENSION resistance as we can see on the weekly chart. A long-term flag with well-defined breakout levels has been on a test and the commodity is in a swing high to test a breakout resistance. A break below 23.50 is now crucial for a downside reversal and a confirmed break below is required to lead to a strong downside continuation all the way to 20. A break and follow-through above 25.85 are required for the upside extension to 28,50.
On a daily chart, we can see that the instrument is testing the confluence of the mentioned resistance, and a confirmation of a break above 25.80 is required. Look for the long trade entries with the stop loss below 25.50 upon a confirmed break above 25.80. Our trading system is indicating a potential of 300 points of profit in that case. The short trade entry could be triggered only on a confirmed break below 23.50.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
