Silver Price Analysis: Consolidating in a pennant pattern

• Silver is trapped in a pennant pattern, according to the 4-hour chart. 
• A breakout would imply a resumption of the uptrend from lows near $19.

Silver is being squeezed in a narrowing price range for the eighth trading day. At press time, the metal is trading largely unchanged on the day at $24.31 per ounce. 

The 4-hour chart shows the metal has carved out a pennant pattern. 

A break above the pennant resistance, currently at $24.56, would confirm the breakout and signal a continuation of the rally from the July 17 lows near $19. That would expose the recent high of $26.20. 

Alternatively, a pennant breakdown would imply bearish reversal and open the doors for a pullback to $22.25 (pennant low). Acceptance under that level would expose the psychological support of $20. 

4-hour chart

Trend: Neutral

Technical levels