Silver Price Forecast – Intraday Bear Flag Triggers as Price Heads LowerIntraday bear flag triggers on the 2-hour chart in silver as the larger daily descending channel correction further develops.
Bear Flag Triggers on 2-Hour Chart
A bearish flag continuation signal has triggered on the 2-hour chart pointing to further downside. However, potentially significant support is relatively close by around $17.36. You can see from the 2-hour chart enclosed how support was found in that price area and rejected a couple times already.
Further, if that price level is broken on the downside there is another price zone comprised of the long-term uptrend line and the 127.2% Fibonacci extension at $17.17, where support might be seen.
Certainly, given the progression of the descending consolidation channel it wouldn’t be surprising for price to reach the lower levels. Keep in mind that price levels identify an area of price. So, if the uptrend line is broken a little, that should not be cause for concern. What happens after that will be more telling. Does price continue lower or reverse for a move back towards the top of the descending flag pattern?
Bear Flag Resistance
The top of the bear flag at 17.76 is key short-term resistance and a break above it negates the bearish pattern as it will be failing at that point and new analysis will then be needed. Note that confirmation of resistance around that price area is given by the blue 34-period exponential moving average (ema). This provides a bit more assurance that the bear trigger could follow-through to the downside.
The next two Fibonacci retracement levels, 78.6% retracement and 88.6% retracement, are provided on the chart, as the next price levels to watch for signs of support.
Price Projection from Bear Flag
We can also look at a Fibonacci projection for the bear flag, which is like a measured move. In this case, a classic target for the flag would come in around $17.26, just shy of the 127% extension and within the potential support zone mentioned above.
Keep in mind that once support is found next it has the potential to be an important bottom that leads to a move back to the top of the descending channel and maybe a breakout of the channel – and therefore daily bull flag breakout.