Silver has been trading in a triangle pattern on the daily timeframe, which has pinched price into a tighter range between 17.500 and 16.200. Price has dropped to the bottom half of this range below the moving averages. The market is now building energy while it remains undecided on what direction follow. Support can be seen at 16.308 and the triangle bottom at 16.200, with a drop lower targeting support at 16.000 and 15.611, which was used as the December 2017 lows.
Resistance above the current price level comes with the cluster of moving averages. The 50 DMA was used as resistance as Wednesday’s daily high and is currently at 16.757. The 100 DMA is at 16.800, with the 200 DMA at 16.893. Further resistance before the 17.000 level is the double-high at 16.982. A break above this area can be used to build a position to test the resistance at 17.470 and the 2018 high at 17.685. Between these levels is the triangle top at 17.568, with a close above this level targeting the high at 18.200.
Since the beginning of February, this pair has stabilised into a trading range between 1.58153 and 1.56057. This price action gives a very clear supporting level, with a move below giving a target of 154.000 if the current pattern creates a Head and Shoulders by staying below the 158.000 area. Immediate support can be found at the 50-period MA at 1.56962 and the 100-period MA at 1.56480. A loss of the neckline would see the first support tested at the 200-period MA (1.55690), followed by the 1.55525 level. Further support on the way to the target is found at 1.54938 and 1.54147. Support below 1.54000 is located at 1.53228 and 1.52769.
Resistance comes at the 1.57550 and 1.57691 levels, before the high of 1.58153. A retest of this level presents an interesting situation. If the level holds and price drops back lower, then this indicates that a Box pattern has formed. This presents an upper target of 1.60200 if price breaks out of the box higher or, with a move down out of the box, a lower target of 1.54000, which is also the target of a double top pattern.