Silver is currently trading at $57.37. What is particularly interesting to me on the 1-hour chart is a triangle pattern. This occurs when price is gradually squeezed into a smaller and smaller range, with a falling trendline above and a rising trendline below that gradually converge. Yesterday’s price action toward $58.65 was pushed away from the upper falling trendline.
The first support area grabbing my attention is at $57.39. The next area is at $56.92, the 38.2% Fibonacci level, with the lower rising trendline just below near $56.72. A break below the trendline would break the pattern and open up $56.34. The resistance area I’m watching is $57.86, followed by the upper falling trendline near $58.37 and then $58.70.
