Market Overview:
The Silver (XAG/USD) 1-hour chart reveals a Rising Wedge pattern, which is a well-known bearish reversal formation. This suggests that the recent bullish trend is losing momentum, and a breakdown could lead to a significant price decline.
🔹 Key Technical Analysis
1️⃣ Rising Wedge Formation & Breakdown
The price has been moving within a rising wedge, characterized by higher highs and higher lows but with weakening momentum.
A breakdown has occurred, confirming the bearish structure as the price has failed to sustain higher levels.
Historically, when a rising wedge breaks to the downside, price tends to drop by the same height as the wedge itself, which aligns with our projected target zone.
2️⃣ Price Action & Retest Possibility
After the breakdown, a retest of the broken wedge support (now resistance) around $33.50 - $33.80 could provide a potential short-selling opportunity.
If price fails to reclaim the wedge support, further downside pressure is expected.
3️⃣ Downside Target & Support Zone
The measured move suggests a decline towards the $31.00 - $30.60 region, which coincides with a strong historical support zone.
This area is highlighted as a potential profit-taking level for short trades.
📉 Trading Plan - Short Setup
🔸 Entry: Look for a rejection from the $33.50 - $33.80 zone (previous wedge support, now resistance).
🔸 Stop Loss: Above $34.00 to protect against false breakouts.
🔸 Take Profit: $31.00 - $30.60 (previous demand area).
🔸 Risk-Reward Ratio: Favorable setup, ensuring proper risk management.
🛑 Risk Factors to Consider
⚠️ If Silver regains strength and breaks back above $34.00, it could invalidate the bearish breakdown and shift momentum back to the upside.
⚠️ Macroeconomic events such as inflation data, Fed speeches, or geopolitical factors could influence price action unpredictably.
The Silver (XAG/USD) 1-hour chart reveals a Rising Wedge pattern, which is a well-known bearish reversal formation. This suggests that the recent bullish trend is losing momentum, and a breakdown could lead to a significant price decline.
🔹 Key Technical Analysis
1️⃣ Rising Wedge Formation & Breakdown
The price has been moving within a rising wedge, characterized by higher highs and higher lows but with weakening momentum.
A breakdown has occurred, confirming the bearish structure as the price has failed to sustain higher levels.
Historically, when a rising wedge breaks to the downside, price tends to drop by the same height as the wedge itself, which aligns with our projected target zone.
2️⃣ Price Action & Retest Possibility
After the breakdown, a retest of the broken wedge support (now resistance) around $33.50 - $33.80 could provide a potential short-selling opportunity.
If price fails to reclaim the wedge support, further downside pressure is expected.
3️⃣ Downside Target & Support Zone
The measured move suggests a decline towards the $31.00 - $30.60 region, which coincides with a strong historical support zone.
This area is highlighted as a potential profit-taking level for short trades.
📉 Trading Plan - Short Setup
🔸 Entry: Look for a rejection from the $33.50 - $33.80 zone (previous wedge support, now resistance).
🔸 Stop Loss: Above $34.00 to protect against false breakouts.
🔸 Take Profit: $31.00 - $30.60 (previous demand area).
🔸 Risk-Reward Ratio: Favorable setup, ensuring proper risk management.
🛑 Risk Factors to Consider
⚠️ If Silver regains strength and breaks back above $34.00, it could invalidate the bearish breakdown and shift momentum back to the upside.
⚠️ Macroeconomic events such as inflation data, Fed speeches, or geopolitical factors could influence price action unpredictably.
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.
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.