I was scanning through various securities in my charts today and found a technical chart pattern in silver (xag/usd). The pattern can be seen on hourly chart. What kind of sentiment does it imply, bullish or bearish? It is difficult to say. It would be normal to say that the market sentiment is neutral. However, taking into account Friday price action when we saw sharp fall in commodities of gold and silver I tend to say that it may mean more bearish than bullish outcome. We can also spot a broadening chart pattern in development in gold (xau/usd), but it might be distorted any minute, so I would not rely too much on it.
Anyway, these kinds of patterns are best traded following a breakout trading system. You need to wait till upper or lower trend line is broken and then go in the direction of the breakout. For the time being the upper breakout point in silver is around 21.90 dollars per ounce. The lower breakout point is now around 21.40 dollars per ounce. How far can prices go after the breakout? If upwards the target would be at 23.00 bucks per ounce. If security breaks downwards we may see 20 dollars per ounce in no time.