Silver rejection at the 100 SMA, looking for pullback first
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.
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.