Are my eyes deceiving me or is that this a reversal pattern forming on silver’s 4-hour timeframe?

I’m seeing what appears to be a fancy double bottom or what could possibly be an inverted head and shoulders formation.

In any case, take a look at this resistance zone being tested!

Silver (XAG/USD) 4-hour Chart by TradingView

While its fellow precious metal gold has already hit fresh all-time highs this week, silver still appears to be struggling to interrupt above this strong ceiling near the $30.000 psychological mark.

This happens to be the neckline of a sketchy reversal pattern on its 4-hour timeframe, so a move above this resistance zone could clear the way in which for a rally that’s the identical size because the formation.

Is XAG/USD in for a bounce or a break then?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. If you happen to haven’t yet done your homework on silver and market sentiment, then it’s time to examine out the economic calendar and stay updated on every day fundamental news!

Note that the 100 SMA is above the 200 SMA to suggest that bullish vibes are present, and that silver is trading above each moving averages so these could hold as dynamic support if R2 ($29.761) keeps gains in check.

Sustained upside pressure past its current levels could take silver as much as the following upside barriers at R3 ($30.342) and even as much as R5 ($31.505) near its July highs.

Don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!