Based on what merit? We have seen a nice impulse into the channel and a rejection upon reaching the zone of $29.00. Good question, based on the fact - from a technical standpoint - the sell off back in February, March 2020 - reversed on a fractal point within the market structure to the crisis of the reluctance for the demand of the Commodities . However, this produced a demand zone to hold from so we have a buying opportunity.
This imbalance was created in which created the impulse. Price re-established itself now between $22-27 zone for a further imbalance where price will now look to as a strong demand for price engineering if needed.
Currently we are in $27.00 zone where the price can see a risk-off rejection however we could see a holding price for the bulls on the lower time frame at the 4 hour level to see where the smaller imbalance is.
See the analysis which brings us to 2021.
See the XAG XAU XAU XAG - correlation chart
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