The silver futures (COMEX:SI) in its 2-hour chart shows a potential reversal formation. Find out with us what to expect from Silver for the coming days.
The ending structure
Once Silver reached the $18.61 level this Thursday 29 session, in its 2-hour chart we observe it develops a potential ending diagonal pattern. The reversal formation will activate if price breaks and closes under $18.40. The loss of intraday lows could start to show weakness on the precious metal. The short-term target is a re-test of the Wednesday lows at $18.025.
Our reading from the last CoT report, we see that 69.51% of institutional traders hold long positions on SI. However, it must be noted that asset managers group, reduced 1.27% (WoW) their long positions and they increased by 5% (WoW) the short positions. On another hand, if we remember Gold (COMEX:GC) is the best-correlated asset against Silver. In this sense, institutional activity released on the last CoT advised that 87.07% of institutions are in the long side.
In consequence, considering the positive correlation among two precious metals, we anticipate that the profit-taking on long positions will drive institutional activity for the coming days.