Talking Points

• Silver Prices May be Developing a Bullish Flag Pattern
• Short Term Support for Silver is Found Near $18.80
• If you are looking for more ideas on trading commodities and metals, check out our Trading Guides .

The price of Silver (Ticker: XAG/ USD ) continues to slide this morning, bringing the commodity to key support near $18.80. This value marks support of a potential descending price channel forming for Silver prices . If prices remain supported here, it opens up price action to bounce back towards resistance. Channel resistance, as depicted below, has been created by connecting a series of swing highs beginning with the July 2016 high at $21.11.

One possibility, suggests that this descending channel is the beginning of a flag pattern. In this scenario, even though prices are currently trading lower, traders may wait for a bullish breakout back in the direction of Silvers primary trend. Traders looking for bullish projections for Silver prices may extrapolate a 1X extension of the markets previous rally. This places potential targets for Silver just under $24.00

Losing Money Trading? This could be why !

Silver Prices Daily Flag Pattern

Chart prepared by Walker England

Alternatively if Silver prices continue to decline, it may suggest that price action is returning back towards a longer term value of support. The Ascending trendline depicted below has been created by connecting a series of higher lows, beginning with the 2016 yearly low at $13.76. This places current trendline support near $17.00. If Silver fails to remain supported hear, it may suggest the beginning of a new bearish trend for the metal.

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Silver Prices Daily Trendline

Chart prepared by Walker England

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