- Silver trades 2.35% higher on Thursday as the price continues to retrace.
- There is a bearish flag pattern on the 4-hour chart that could be important.
Silver 4-hour chart
Sliver has been moving higher since the start of the week after a dismal last week. The price has not managed to move above USD 24.50 per troy ounce where there had been some resistance in the past. Much of the future price action will depend on the non-farm payroll result on Friday.
On the price chart, the key feature is the bear flag pattern marked by the purple lines. If the price breaks this formation to the downside it could indicate the bear trend is back on. The target for the bears could then be the wave low at USD 21.70 per troy ounce.
If the pattern fails and the price does move above USD 24.50 per ounce then the black horizontal line at USD 26 per ounce would be the next important resistance. The level is the strongest on the chart and has been tested on multiple occasions.
The indicators are pretty flat at the moment and the MACD histogram and signal lines are near the mid-level. Overall this is still an uptrend on the higher timeframes but the retracement is pretty deep. A break back above the black resistance line could restore some confidence for the bulls but at the moment the bears are still in charge.