Silver is testing the downside continuation resistance
Silver is testing 23.88 a strong downside continuation resistance as we can see on the weekly chart. A medium-term uptrend channel with well-defined breakout levels has been broken and the instrument is in the consolidation since breaking. A break below 23.88 could lead to a strong downside continuation all the way to 20.70. A break and a follow-through above 25.30 are required for the downside extension invalidation.
ELLIOTT WAVE&PRICE ACTION CRASH COURSE+ADD ONS 50% OFF PROMO!
On a daily chart, we can see that the instrument is in the consolidation for the downside extension forming a bearish flag, and a break below 23.80 is required. Look for the short trade entries with the stop loss above 24.50 upon a confirmed break below 23.80. Our trading system is indicating a potential of 200 points of profit. The short trade entries invalidation to come only on a clear daily close above 25.16 and would trigger stops and a reversal from short trade entry to long.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
