More downside expected
Good day traders! Silver continues trading lower after the September high that ended right at the upper red warning line of my Schiff pitchfork (red arrow).
I’m cautiously viewing the price structure from the September high as corrective and feel that there is more downside potential before price will find decent support. Assuming that we are looking at a corrective pattern, then price might continue fluctuating within the green channel on my chart.
Silver could potentially trade higher soon, within the larger corrective phase, but price would need to break above the 17.11 level to confirm that. Overhead resistance might come in between 17.50 – 17.70 if price is drawn back to my center median line.
Alternatively, a move lower towards my center channel line could see price find support between the 16.15 – 16.35 price levels where a 0.618% Fib retracement, previous high (16.18) and my lower blue median line reside.
I’m expecting this whole corrective pattern to be a drawn-out affair which could take quite some time to complete. If you glance back at Silver’s historical price action, then you will see that price has mostly been stuck within sideways consolidation phases, with short trending periods.
Until next time, happy and safe trading!