Very critical area for Silver

Silver is currently at a critical juncture, and a breakout above this resistance could lead to a rapid shift in the overall market sentiment.

It's essential to note that we are analyzing a daily chart featuring a bearish channel. In the event of a bullish breakout, the price target would be the width of this daily channel. Given the high correlation between silver and gold, we may anticipate a similar behavior in gold.

Considering that both gold and silver are often considered risky assets, particularly gold, if they are poised for such a movement, it suggests there might be a significant news release providing the necessary momentum for a breakout above this crucial resistance.

However, it's crucial to remain cautious, as any breakout without substantial news support could be deemed a false breakout, potentially leading to a reversal.

Commentaire:

Price momentum and volume are decreasing as it's been trading in a major, important higher timeframe area. This decrease in momentum and volume is expected in a range-bound area.

Upon a valid breakout, these two critical indicators will surge, providing us with important clues to differentiate between a valid and an invalid breakout.