$XAGUSD - Technical analysis and some fundamentals
Updated
Hi guys! 👋🏻
🔔 Silver once again outperformed Gold today by gains, Silver is up just over 1%, while Gold gained only 0.24%.
🔔 According to the CFTC data as of March 9, there is a 20,000 spread between the overall net positions on Silver Futures, with an edge going to short positions. The update of the CFTC data on Silver will be released later tomorrow, worth checking it out.
🔔 As per the technicals, silver seems bearish below the ascending channel, the retest of the channel’s dynamic support as resistance, on March 11 adds fuel to the bearish sentiment of XAG/USD.
🔔 Although Silver might look ascending in a short uptrend, supported by a signal from MACD, MA100 and MA200 act as a strong resistance lying right next to the dynamic level which acted as a strong resistance previously, there is a key level and a pattern which might halt the uptrend for a longer period.
🔔 A falling wedge pattern formed on a 4H XAG/USD chart suggests that there should be one more leg down before Silver could regain power and continue upwards. There is a strong resistance at levels $26.60 and $26.75, which should be tested soon enough, the area of this resistance’s strong repulsing force is backed by multiple static resistance points, upper edge of the wedge pattern and the upper edge of the local ascending channel.
🔔 If Silver is not able to break and close above $26.75 and is rejected by this resistance area, the sharp fall may send it back to $24.90 and $24.35. If Silver is able to close above $26.75, then it might signal the bullish continuation of the precious metal, however the first scenario looks more relevant based on the chart analysis and the data from CFTC.
🔔 To minimize your risk wait for the touch of the dynamic resistance mentioned above or breakout from the lower local dynamic support (black)
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
🔔 Silver once again outperformed Gold today by gains, Silver is up just over 1%, while Gold gained only 0.24%.
🔔 According to the CFTC data as of March 9, there is a 20,000 spread between the overall net positions on Silver Futures, with an edge going to short positions. The update of the CFTC data on Silver will be released later tomorrow, worth checking it out.
🔔 As per the technicals, silver seems bearish below the ascending channel, the retest of the channel’s dynamic support as resistance, on March 11 adds fuel to the bearish sentiment of XAG/USD.
🔔 Although Silver might look ascending in a short uptrend, supported by a signal from MACD, MA100 and MA200 act as a strong resistance lying right next to the dynamic level which acted as a strong resistance previously, there is a key level and a pattern which might halt the uptrend for a longer period.
🔔 A falling wedge pattern formed on a 4H XAG/USD chart suggests that there should be one more leg down before Silver could regain power and continue upwards. There is a strong resistance at levels $26.60 and $26.75, which should be tested soon enough, the area of this resistance’s strong repulsing force is backed by multiple static resistance points, upper edge of the wedge pattern and the upper edge of the local ascending channel.
🔔 If Silver is not able to break and close above $26.75 and is rejected by this resistance area, the sharp fall may send it back to $24.90 and $24.35. If Silver is able to close above $26.75, then it might signal the bullish continuation of the precious metal, however the first scenario looks more relevant based on the chart analysis and the data from CFTC.
🔔 To minimize your risk wait for the touch of the dynamic resistance mentioned above or breakout from the lower local dynamic support (black)
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
Trade closed: target reached
Nothing is true, everything is permitted.
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