🧠 Technical Analysis:
🔷 Pattern: Symmetrical Triangle
The triangle developed over several sessions, reflecting indecision between buyers and sellers.
Volume often decreases during triangle formations, and spikes at the breakout—confirming the move.
🔻 Breakout Direction: Bearish
The breakdown occurred with a strong bearish candle, confirming momentum.
A potential retest of the broken trendline could serve as an ideal entry point for short positions.
📉 Trend Continuation:
The triangle was preceded by strong upward movement (bullish pole), but the failure to break higher shows buying exhaustion.
The breakdown invalidates bullish continuation and shifts the bias toward downside targets.
📊 Trade Setup:
Entry: On breakdown confirmation or retest of broken triangle support (~33.05–33.10)
Stop Loss: Above recent swing high / upper boundary of triangle (~33.72)
Target 1: 32.70072 – Short-term support, ideal for partial profit booking
Target 2: 32.32512 – Completion of the measured move from the triangle height
📏 Measured Move Calculation:
The vertical height of the triangle is projected from the breakout point to estimate Target 2.
This technique is common in classical chart pattern trading and adds confluence to the trade plan.
🔁 Market Psychology:
The triangle reflects a period of uncertainty, where bulls and bears are battling for control.
The eventual breakdown suggests bears have gained the upper hand, likely triggering stop-losses of long positions and attracting momentum shorts.
Price may now move swiftly as it escapes the congestion zone.
⚠️ Risk Management:
Keep risk per trade within 1–2% of your trading capital.
Be prepared for a pullback or retest to the breakdown level.
Always wait for confirmation before entering (e.g., candle close below trendline).
📝 Final Thoughts:
This setup offers a clean risk-reward structure for short traders. If silver continues to follow technical cues, we may see a swift drop toward the 32.70 and 32.32 support zones. However, remain flexible—monitor for any false breakouts or reversal signals.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.