📌 Overview:
This chart shows a classic Double Top Pattern forming on the weekly timeframe for Silver (XAG/USD). Price has reached a multi-year resistance zone and failed to break above it twice, signaling potential exhaustion of bullish momentum and the possibility of a larger trend reversal.
🧩 Detailed Pattern Breakdown:
🔹 1. Double Top Pattern
The double top is one of the most reliable bearish reversal patterns, formed when the market tests a resistance level twice and fails to break it, creating two rounded or sharp peaks. In this case:
Top 1 and Top 2 occurred near the $35–36 zone, clearly marked as a major resistance level.
This indicates strong selling pressure from that zone.
🔹 2. Major Resistance Zone
The $35–36 price range has historically acted as a ceiling for Silver prices. It rejected price several times between 2021 and 2025. When this kind of level holds, it often precedes sharp corrections, especially when volume begins to drop and momentum weakens.
🔹 3. Rising Trendline Break
After forming the double top, price broke down through a key ascending trendline, a sign that the bulls are losing control. The breakdown is further confirmed by a strong bearish candle, closing below both the trendline and a critical SR (Support-Resistance) Interchange zone.
🔹 4. Retesting in Progress
Post-breakdown, the price action is now retesting the broken trendline and horizontal zone (~$28). This is a crucial moment:
If Silver gets rejected here, it confirms the bearish breakout and signals entry for sellers.
If it reclaims this level, the bearish setup could fail, and price might consolidate or resume uptrend.
🔹 5. SR - Interchange Zone
This zone is marked because it acted as resistance during the 2022-2023 period, and then flipped into support in 2024. Currently, it’s being tested from below, making it an SR flip retest. These zones often become inflection points.
🔹 6. Black Mind Curve Support
An important and unique addition is the “Black Mind Curve Support” – a curved dynamic trendline that has historically aligned with price retracements. The projected path shows that the curve and horizontal support (~$22.68) intersect, strengthening the significance of that level.
🔹 7. Measured Move & Target
Based on the height of the Double Top pattern (approx. $10 range from top to neckline), the measured move places the target near $22.68, which matches both:
Historical demand zone
Curve support
This alignment makes $22.68 a realistic and strong downside target.
🧭 Strategic Summary:
Pattern Type: Double Top (Bearish Reversal)
Key Resistance: $35–36 (Multi-year rejection level)
Trendline: Broken (Bearish confirmation)
Retesting Area: $28–29 zone (Watch for rejection)
Downside Target: $22.68 (Confluence of support zones)
Invalidation: Clean weekly close above $35
🔍 What Traders Should Watch:
✅ Bearish Candlestick Confirmation at the retest zone (e.g. bearish engulfing, shooting star).
✅ Increased volume on drop, confirming participation by larger players.
🚫 Invalidation signal would be a sustained move and close back above the resistance zone.
⚖️ Risk Management Tip:
This pattern offers a high risk-to-reward ratio trade setup. Short entries on the retest with stop loss above $36 can provide substantial downside potential toward $22–23, especially in a commodity market prone to sharp retracements.
📌 Final Thoughts:
Silver appears to be forming a clean double top reversal at a long-term resistance. If the current retest fails, a significant correction may follow, targeting the $22.68 level. This pattern, combined with key support-resistance dynamics and psychological zones, makes this setup worth monitoring for medium- to long-term traders.
This chart shows a classic Double Top Pattern forming on the weekly timeframe for Silver (XAG/USD). Price has reached a multi-year resistance zone and failed to break above it twice, signaling potential exhaustion of bullish momentum and the possibility of a larger trend reversal.
🧩 Detailed Pattern Breakdown:
🔹 1. Double Top Pattern
The double top is one of the most reliable bearish reversal patterns, formed when the market tests a resistance level twice and fails to break it, creating two rounded or sharp peaks. In this case:
Top 1 and Top 2 occurred near the $35–36 zone, clearly marked as a major resistance level.
This indicates strong selling pressure from that zone.
🔹 2. Major Resistance Zone
The $35–36 price range has historically acted as a ceiling for Silver prices. It rejected price several times between 2021 and 2025. When this kind of level holds, it often precedes sharp corrections, especially when volume begins to drop and momentum weakens.
🔹 3. Rising Trendline Break
After forming the double top, price broke down through a key ascending trendline, a sign that the bulls are losing control. The breakdown is further confirmed by a strong bearish candle, closing below both the trendline and a critical SR (Support-Resistance) Interchange zone.
🔹 4. Retesting in Progress
Post-breakdown, the price action is now retesting the broken trendline and horizontal zone (~$28). This is a crucial moment:
If Silver gets rejected here, it confirms the bearish breakout and signals entry for sellers.
If it reclaims this level, the bearish setup could fail, and price might consolidate or resume uptrend.
🔹 5. SR - Interchange Zone
This zone is marked because it acted as resistance during the 2022-2023 period, and then flipped into support in 2024. Currently, it’s being tested from below, making it an SR flip retest. These zones often become inflection points.
🔹 6. Black Mind Curve Support
An important and unique addition is the “Black Mind Curve Support” – a curved dynamic trendline that has historically aligned with price retracements. The projected path shows that the curve and horizontal support (~$22.68) intersect, strengthening the significance of that level.
🔹 7. Measured Move & Target
Based on the height of the Double Top pattern (approx. $10 range from top to neckline), the measured move places the target near $22.68, which matches both:
Historical demand zone
Curve support
This alignment makes $22.68 a realistic and strong downside target.
🧭 Strategic Summary:
Pattern Type: Double Top (Bearish Reversal)
Key Resistance: $35–36 (Multi-year rejection level)
Trendline: Broken (Bearish confirmation)
Retesting Area: $28–29 zone (Watch for rejection)
Downside Target: $22.68 (Confluence of support zones)
Invalidation: Clean weekly close above $35
🔍 What Traders Should Watch:
✅ Bearish Candlestick Confirmation at the retest zone (e.g. bearish engulfing, shooting star).
✅ Increased volume on drop, confirming participation by larger players.
🚫 Invalidation signal would be a sustained move and close back above the resistance zone.
⚖️ Risk Management Tip:
This pattern offers a high risk-to-reward ratio trade setup. Short entries on the retest with stop loss above $36 can provide substantial downside potential toward $22–23, especially in a commodity market prone to sharp retracements.
📌 Final Thoughts:
Silver appears to be forming a clean double top reversal at a long-term resistance. If the current retest fails, a significant correction may follow, targeting the $22.68 level. This pattern, combined with key support-resistance dynamics and psychological zones, makes this setup worth monitoring for medium- to long-term traders.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.