SILVER: New bull cycle or just a Lower High? See what to expect.
A lot of discussion is going around on whether or not Silver has enter a new long term Bull Cycle. We are not against this possibility. But we thought it is useful to analyze also the scenario where XAGUSD is only on its way to a Lower High before diving even more on the long term and continue its multi year Bear Cycle.
On the three charts you see the current price action on the 1W time frame followed by Patter A which shows the price action mostly in the 1980s when Silver was still in the Bear Cycle, making only a Lower High and then Pattern B which shows the late 1990s - early 2000s when Silver broke into its last Bull Cycle.
All charts share some similar sequences: Peak (Lower High) on the Red Arrow Down, followed by a Channel Down (orange shape) and then accumulation after the bottom (eclipse shape). What followed in all charts is a very aggressive (non-stop) bullish 1W candle streak. What separates the patterns though and is the key in determining which phase Silver is currently at is the Golden Cross formation.
On Pattern A it took place after the aggressive rise made a peak (Lower High) and then Silver extended the Bear Cycle.
On Pattern B the Golden Cross took place before the aggressive rise made a peak. Then the price pulled back to the MA50, which held and supported Silver as it started its new Bull Cycle.
We have to say that on these terms, the current price action resembles Pattern A more, as the Golden Cross hasn't taken place yet. However it is not at all impossible to be replicating Pattern B as Silver may continue this parabolic rise so aggressively and make the Golden Cross on much higher levels.
We therefore would suggest investors to take a wait-and-see action and observe how the candle action will affect the MA periods.
* If the price currently pulls back and tests the MA200 then we are most likely still within the Bear Cycle and Silver will extend the downtrend.
* If it rises more and then pulls back to test the MA50 then we will most likely be starting a near Bull Cycle and investors can more safely enter into a long term trade.
We will be analyzing Silver on a more regular short/ medium term basis so stay tuned for more trading set-ups.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
On the three charts you see the current price action on the 1W time frame followed by Patter A which shows the price action mostly in the 1980s when Silver was still in the Bear Cycle, making only a Lower High and then Pattern B which shows the late 1990s - early 2000s when Silver broke into its last Bull Cycle.
All charts share some similar sequences: Peak (Lower High) on the Red Arrow Down, followed by a Channel Down (orange shape) and then accumulation after the bottom (eclipse shape). What followed in all charts is a very aggressive (non-stop) bullish 1W candle streak. What separates the patterns though and is the key in determining which phase Silver is currently at is the Golden Cross formation.
On Pattern A it took place after the aggressive rise made a peak (Lower High) and then Silver extended the Bear Cycle.
On Pattern B the Golden Cross took place before the aggressive rise made a peak. Then the price pulled back to the MA50, which held and supported Silver as it started its new Bull Cycle.
We have to say that on these terms, the current price action resembles Pattern A more, as the Golden Cross hasn't taken place yet. However it is not at all impossible to be replicating Pattern B as Silver may continue this parabolic rise so aggressively and make the Golden Cross on much higher levels.
We therefore would suggest investors to take a wait-and-see action and observe how the candle action will affect the MA periods.
* If the price currently pulls back and tests the MA200 then we are most likely still within the Bear Cycle and Silver will extend the downtrend.
* If it rises more and then pulls back to test the MA50 then we will most likely be starting a near Bull Cycle and investors can more safely enter into a long term trade.
We will be analyzing Silver on a more regular short/ medium term basis so stay tuned for more trading set-ups.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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www.investingscope.com
Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial