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  • Spot silver prices trade broadly flat on Thursday amid thinned market conditions given the US Thanksgiving holiday.
  • XAG/USD has been consolidating within a short-term pennant over the past two days around a longer-term uptrend.

Spot silver prices (XAG/USD) trade pretty much flat on the day just above $23.30. The precious metal is off extremes; gains were capped at $23.50 on Thursday morning but the buyers came in ahead of $23.20. That marks two days now that silver has been unable to rally past $23.50. Thursday’s consolidative price action is in fitting with a broader sense of market quiet with US participants largely absent due to Thanksgiving holidays.

XAG/USD consolidates within short-term pennant as it tests long-term uptrend

Spot silver prices are in the process of forming another short-term pennant structure, with the upper bound a downtrend linking the Tuesday Asia session highs with Wednesday and Thursday’s highs. The lower bound is an uptrend linking Wednesday and Thursday lows.

Should silver’s short-term pennant break to the downside, this would likely coincide with a break of Thursday and Wednesday lows around $23.20 and $23.10 respectively, and that would open up a test of weekly lows just below the psychological $23.00 mark.

It is also worth noting that silver is also currently consolidating around an uptrend that links the September and October lows at $21.68 and $22.60 respectively. Such a move as described above would signal a break this longer-term trendline and bring these October and September lows into the equation as the most important downside levels to watch over the coming weeks.

Conversely, in the bullish scenario where this longer-term uptrend hold up and eventually leads to an upside break of silvers short-term pennant, the most immediate level of resistance to note would be the 19 November low at $23.69. Beyond that, the door would be open to a move back to the psychological $24.00 level, and then a potential test of the 21 and 50 day moving averages which reside close to $24.20.

XAG/USD eight hour chart

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XAG/USD one hour chart

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