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

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

In any case, check out this resistance zone being tested!

Silver (XAG/USD) 4-hour Chart by TradingView

While its fellow precious metal gold has already hit fresh all-time highs this week, silver still seems to be struggling to break above this strong ceiling near the $30.000 psychological mark.

This happens to be the neckline of a sketchy reversal pattern on its 4-hour time frame, so a move above this resistance zone could clear the way for a rally that’s the same size as the formation.

Is XAG/USD in for a bounce or a break then?

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

Note that the 100 SMA is above the 200 SMA to suggest that bullish vibes are present, and that silver is trading above both moving averages so these could hold as dynamic support if R2 ($29.761) keeps gains in check.

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

Don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!