Price in the Silver market has formed an inside bar on the daily price action chart after breaking out of a key daily resistance level. As I posted on the 9th Dec 2014 | Silver Engulfing Bar Has Price Stuck at a Crucial Daily Level Daily Market Commentary price had been contained underneath this key daily resistance, with this level looking to be crucial for where price goes in the coming days and weeks for this market.
Now that price has successfully broken out higher with a strong breakout and most importantly price has closed above, traders can look to see if this old resistance becomes a price flip level and new support. If price was to rotate back lower and into the old resistance level it could present with a potential opportunity to look for long trades and to see if the level is going to hold as a new price flip.
Price has printed off a price action inside bar after breaking out higher. This is a common occurrence after price makes a big or powerful move. Price will normally make a strong move, pause and then form a candle such as an inside bar to continue the move. If price was to continue higher, the next resistance comes in overhead around the 17.65 area as shown on the daily chart below.
Silver Daily Chart
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