Silver Dangling at Major Polarity Zone
Silver’s decline within what fits well as a classical, potential “descending triangle” pattern has now brought the metal to a major zone of polarity — former resistance that is now a major support level . There have been several attempts to hold $21 in the last couple of years, all of which were successful. Now we are back at it again and given the weight of the evidence, the importance of this zone has to be respected.
Any breakdown below the support zone will mean the camel’s back will well and truly be broken. A measured objective (in % terms) considering the maximum width of the triangle projects to an area very close to the March 2020 lows of around $12.
Let me say it again — it’s a potential triangle until activated. Bulls, below $21, don’t forget risk management.
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