Chart: Trend Reversal Due for Silver (XAG/USD)?

Are my eyes deceiving me or is this a reversal pattern forming on silver’s 4 hour time frame?

I see what appears to be a complex double bottom or what could be an inverted head and shoulders formation.

In any case, check out this tested resistance area!

Silver (XAG/USD) 4 Hour Chart from TradingView

While its fellow precious metal gold has already hit fresh all-time highs this week, silver appears to be still struggling to break this strong ceiling near the psychological $30,000 mark.

This happens to be the neckline of an incomplete reversal pattern on its 4-hour time frame, so a move above this resistance area could pave the way for a rally of the same size as the formation.

Is XAG/USD on hold or a pause then?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on silver and market sentiment yet, then it’s time to check the economic calendar and catch up on the daily fundamental news!

Note that the 100 SMA is above the 200 SMA to suggest bullish vibes are present and silver is trading above both moving averages, so they could hold as dynamic support if R2 ($29,761) keeps gains in check.

Sustained upside pressure beyond current levels could take silver to the next upside barriers at R3 ($30.342) or even as high as R5 ($31.505) near its July highs.

Remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!