SILVER, after quite rapid increases from June to the first days of September this year, reached the peak of this year’s $19.63/oz. After reaching this level, the last time seen in 2016, the price started to decrease, moving in the downward channel.
On Monday the quotes were moving in the range of the Friday candle (11.10) and an Inside Bar pattern was formed ($17.74-$17.32).
On chart H4 we can see that the price is currently in an important position. The upper IB limit coincides with the supply zone (blue) and additionally the resistance of the downward channel passes here. Such a confluence usually increases market interest and if this resistance is overcome, we can expect influx of buy orders or, in case of rejection, sell orders. Therefore, it is worthwhile to observe the price behavior of this commodity and join when the appropriate price action signal appears. Permanent overcoming of this resistance may direct the market to the price at the level of 18.57. However, if the price successfully overcomes the lower level of IB (17.32) it would be worth taking short positions with the target of 17.03.
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