- Silver trades between trendlines that form a triangle
- Outlook is neutral, moving averages have flattened
- Break on either side of triangle will reveal next big move
Silver prices continue to trade within a symmetrical triangle pattern, formed by a longer-term uptrend line drawn from the lows of September 2022 and a downtrend line connecting the peaks of May. Hence, the picture seems neutral for now. A break on either side of the triangle is required to signal the next directional move.
The fact that the 50- and 200-day moving averages (MAs) have converged and have also flattened is a testament to this neutral outlook. Similarly, the RSI is near its midpoint of 50, reaffirming the absence of any momentum.
Should buyers remain in control, the first barrier to overcome would be the 23.35 zone. The 200-day MA is just above at 23.45, and can be considered part of the same zone. If violated, the next major obstacle would be the intersection of the 24.30 region and the downtrend line that’s part of the triangle.
If sellers take back the reins instead, there isn’t much support until the 22.20 territory and the uptrend line that forms the lower boundary of the triangle. A clean break below this crossroads would shift the picture to negative, opening the doors for extensions towards the 21.25 area.
Summarizing, the outlook seems neutral as long as silver continues to trade within the triangle.
