- Silver is on the march and headed towards the counter trendline.
- Bears will be seeking rejections from the confluence of the resistance structure.
Silver has corrected the majority for the recent brekof trendline support and the following illustrates where the next key resistance is and implications of a failed retest.
Daily chart
The price of silver burst below the once-dynamic trendline support which has now turned into a counter trendline from which the bulls are seeking to re-test.
At the current price, the prior support has been penetrated as hs the 10-day EMA which does not bode well for the bears seeking a continuation to the downside.
If the counter trendline does not hold, this would be a significantly bullish scenario for the following sessions and in line with the dominant bullish trend.
The question here is how much further has the correction left to go?
On the 4-hour chart, there is a compelling bullish pattern as follows:
The resistance is compelling s being the neckline of an M-formation, a pattern that has a high hit rate for completion at the neckline.
A break of the neckline will put the bis heavily into the hands of the bulls as it meets the counter trend-line resistance.
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