Based on our previous analyses, we are long on
XAGUSD
from the break of the downtrend, coinciding with our buy area (0.786 - 0.886 of previous impulse to the upside).
We are monitoring the price action of the commodity closely, however, because as of now, the movement happening after said break does not yet have that "strength" which should characterize an impulsive movement such as the one we expect. Therefore, to all those who managed to open long positions on the aforementioned break, like us, we recommend placing your stops in break even.
As we observe the overall structure on the daily and weekly timeframes, this seems to be a necessary precaution. As you can see on our chart, in fact, it is true that
XAGUSD
broke the weekly trend line to the upside and is consolidating around it, indicating an attitude for a trend reversal to the upside (Silver is still in a downtrend, on the weekly, until proven otherwise). However, this huge "sideways" move could actually be a bigger "ABC" correction, in the form of an expanding flat, for more downside, with a "B" leg still uncompleted (dotted lines, in pink).
This would mean that the next movement would be to the downside, completing said "B" leg, and this last movement to the upside on the daily, is in reality just a correction for more downside.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
XAGUSD
from the break of the downtrend, coinciding with our buy area (0.786 - 0.886 of previous impulse to the upside). We are monitoring the price action of the commodity closely, however, because as of now, the movement happening after said break does not yet have that "strength" which should characterize an impulsive movement such as the one we expect. Therefore, to all those who managed to open long positions on the aforementioned break, like us, we recommend placing your stops in break even.
As we observe the overall structure on the daily and weekly timeframes, this seems to be a necessary precaution. As you can see on our chart, in fact, it is true that
XAGUSD
broke the weekly trend line to the upside and is consolidating around it, indicating an attitude for a trend reversal to the upside (Silver is still in a downtrend, on the weekly, until proven otherwise). However, this huge "sideways" move could actually be a bigger "ABC" correction, in the form of an expanding flat, for more downside, with a "B" leg still uncompleted (dotted lines, in pink). This would mean that the next movement would be to the downside, completing said "B" leg, and this last movement to the upside on the daily, is in reality just a correction for more downside.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.