Spot Silver Breaches Support

Following on from last week’s spot silver chart (XAG/USD), local trendline resistance, etched from the high of $32.51, stood its ground, eventually forcing the precious metal south of neighbouring support from $30.73 (now marked resistance) and longer-term trendline support (drawn from the low of $22.31).

You may also acknowledge that price action on the daily chart recently completed (just) a head and shoulders top pattern (blue arrows – head at $31.75).

Therefore, further selling in this market is possible, targeting support from $28.86. However, before sellers shift gears, a retest of resistance (and the breached trendline support) could materialise (black arrows).