The Silver market, on the H4 chart, had upward momentum until the 13 of August when a higher top was recorded at 17.50924. News events cause a sudden bearish movement but sellers could not sustain the momentum and for a time there was a balance between demand and supply.
After a lower top formed on 16 August, sellers finally overwhelmed buyers and the market started moving downwards. The price broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator broke the zero baseline into negative territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Death Cross. This confirmed the possibility of a technical trend reversal in progress.
A possible critical support level formed when a lower bottom was recorded at 16.85142 on the 19th of August. Buyers are currently trying to push the market higher.
If the price of Silver breaks through the critical support level at 16.85142, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 16.85142 and dragging it to the top of a possible resistance level near the 34 Simple Moving Average at 17.16606, the following targets may be calculated. The first target can be anticipated at 16.65698 (161 %). The second price target can be predicted at 16.34234 (261.8%) and the third and final target may be expected at 15.83326 (423.6%).
If the possible resistance level at 17.16606 is broken, the anticipated scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Silver market on the H4 time-frame will remain bearish.
After a lower top formed on 16 August, sellers finally overwhelmed buyers and the market started moving downwards. The price broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator broke the zero baseline into negative territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Death Cross. This confirmed the possibility of a technical trend reversal in progress.
A possible critical support level formed when a lower bottom was recorded at 16.85142 on the 19th of August. Buyers are currently trying to push the market higher.
If the price of Silver breaks through the critical support level at 16.85142, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 16.85142 and dragging it to the top of a possible resistance level near the 34 Simple Moving Average at 17.16606, the following targets may be calculated. The first target can be anticipated at 16.65698 (161 %). The second price target can be predicted at 16.34234 (261.8%) and the third and final target may be expected at 15.83326 (423.6%).
If the possible resistance level at 17.16606 is broken, the anticipated scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Silver market on the H4 time-frame will remain bearish.