Silver continues to trace trendline following selloff
Silver remains within a consolidation phase at the apex of the symmetrical triangle we have been watching in recent months. Doji and spinning top candles have been a regular occurrence in recent weeks to reflect the indecision in the markets, and if pushed I would say it is probably more likely that we will break lower than push higher owing to the inability to catch a bid from these levels.
This does seem, on the face of it, like a period of consolidation, and given we are following a sharp selloff price action alone would give a bearish tone. Nevertheless, I await a breakout to gain confidence of the direction in the same manner as gold.
A close above $16.30 would bring a bullish outlook and call for $16.80 and $17.20. Meanwhile, a close below $15.85 would likely bring a move towards $15.60 and $15.29.
Brent continues to bounce from trendline support
Brent has been consolidating over the past 24 hours, following a bounce from the descending trendline dating back to early May. However, this looks like it will be a relatively short-term bounce and I expect the sellers to come back into play soon for a move towards $63.21. This would be invalidated by a move above $64.40.
WTI bounce looks like continuation pattern and points to losses
The move higher we are seeing this week looks a lot like a flag pattern, albeit without a highly volatile entry. Given the reversal lower from the triangle resistance zone, I expect to see selling pressure come back into play soon, and thus await a break below the support trendline of this short-term channel to instigate a move back to $58.80and $57.85.