XAGUSD Maybe temporary bounce unless the 1D MA50 breaks.

Silver (XAGUSD) has been on a short-term rise since the May 13 Low. The long-term pattern is a Channel Down since May 18 2021, so practically a whole year of Lower Highs and Lower Lows. The recent one, isn't a solid Lower Low however, in fact it resembles the August 09 2021 Low, which despite a short-term rise, it failed exactly on the 1D MA50 (blue trend-line) and got rejected to a Lower Low.

It was only when the price later broke above the 1D MA50 that the uptrend was sustained and eventually made a new Lower High. As a result, with the 1D Death Cross imminent (when the 1D MA50 crosses below the 1D MA200), it is best to buy either on the exact bottom (Lower Lows) trend-line of the Channel Down or if the 1D MA50 breaks first. Notice how in the rise to the Lower High, the 1D MA200 (orange trend-line) also rejected the uptrend twice. Keep those in mind if you engage into long-term trading within this pattern. It is also important to have the 1W RSI Resistance and Support Zones in the equation.


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