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Silver has been forming an ascending triangle since the april lows and the recent push higher just got rejected at the 80.30-83.00 major resistance zone which is also where the 100 SMA sits. Daily candle closed back below the zone, confirming short term resistance.. before any real breakout I am looking for a pullback first.

Silver Daily Chart

Reasons:

• Rejection at a major supply zone

• 100 SMA(at 80.405) acting as dynamic resistance right at the same level

• Failed daily close above the zone after testing it

• A potential Ascending triangle still in play(although not confirmed a triable yet) but needs another pullback first to build a fresh base of buyers before any breakout

• Buyers likely to defend the rising trendline and 50 SMA at 76.95-77.17 zone.

I am looking for a drop toward 77.00 as first target, where the short term most recent swing high sits. If price holds the rising trendline and prints a clear rejection wick, that is where I would consider going long again with the bigger picture target back at 83.00 then 85.00.

If price closes back above 80.50 , the short term bearish view is invalidated and the breakout setup opens up directly toward 83.00.

Lets see how it plays out.