LupaCapital

XAG USD - Great levels to come - trade accordingly

TVC:SILVER   CFDs on Silver (US$ / OZ)
Important - review the XAU XAG below - the analysis is playing out nicely thus far since March 2022.

G'day,
Previous analysis attached below, please review these. Comments are always appreciated.

Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.

A note before reading - this is a supply and demand imbalance analysis, where trades are taken from certain zones- based upon our trading strategy. This is tagged Neutral, however, as outline below - will be buying until the OL, offers a highly probable zones where a confirmed sell break and a confirmed sell from the Original level. Starting the supply and demand imbalance. Overall, where an imbalance is formed and sellers have completed the changing of hands due to purchasing further increments the exhaustive sellers.

Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities. However, note, at current we are in a bearish (positional trade). Also note, sentiment changes as does entry points, stop losses and profit taking points. This chart is not dynamic once submitted so keep this in mind. Updates are dynamic however.

Master Key for zones
Red = Three Month
Blue = Monthly
Purple = weekly
Pink= Three, Four Day
Orange = Daily
White - Zone of interest - time frame dependent of above.

Risk Warning
Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence.

Monthly

  • Silver and Gold has seen a large sell off from the imbalance created between $25-28 FL.
  • The reason for this zone looking left showed a strong rejection monthly wick and a corrective phase over two subsequent months, allowing price to look for a pivot point tapping a weekly zone (use Fibonacci tool to align, using high $30.63 to bottom $23.96).

FL level on the weekly will break
To understand why this zone will break is for two reasons;
  • Despite being a Fresh zone, the structure below has also been untested. Following the reactive departure height of the OL below between $12-15, has offered a high probability of rejection and using the zone as a base in the formation of a Drop base Drop.
  • The imbalance here can allow lower time frame reactive buys from the level indicated using a weekly. However, the price action to this point has showed (looking at the structure left) of a poor price action and strong departure, meaning the sells have no obstacle when returning to the level formed.

    Using the rules of touches allows the buys to be placed. Rules applied here upon a second touch (as of 29th august start) shows a second tap of the weekly zone. Expect a lower low to be placed.

Four day
  • The four day chart has shown a clear picture of a squeeze pattern, however noting on the four day a falling wedge pattern has occurred, creating an interesting moment where price can break out from a deep reactive test - moving price back up towards $26 as a fresh level. However, do not trade until a confirmation rule applies.
  • The high curve (downward trendline) has shown no probability of turning bullish - the reason is the Weekly and Monthly structure shows the pathway for the arrival destination heading towards the OL at the Monthly.

Falling wedge - optional counter trade
Only where a reactive departure is created and breakout forms.

Daily
  • Clear downward sell into the weekly FL, offering a deep corrective sell - note, price is now within the weekly zone and a DCA buy will now be a strong optional move as price is now considered "cheap" relative to Gold.
  • Technicals, (scroll out) and look the structure left - price needs to move towards the weekly arrival point of $17.5 est - where price can pivot as here lies the price action zone which makes up the weekly departure move.
    Completing a head and shoulder pattern formation and will extend bearish into the desired move.

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  • Professional analyst with 5+ years experience in the capital markets
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Thanks,
LVPA MMXXII
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