XAG/USD | Situation escalates, Silver drops further!

Jul 13

By examining the 4H chart of Silver we can see that after failing to stabilize above the Consequent Encroachment of the 4H FVG, it dropped out of the FVG and went as low as 57.71, but then recovered a bit and is now being traded at around 58.40.

During the weekend, the tensions in the Middle East intensified and everything escalated so fast, with IR sending drones and US bombing the important Ports of Iran.
After President Trump's tweet on Friday, Gold suddenly dropped and has been on a bearish run ever since last night's open, and if the Strait of Hormuz that has been closed once again remains closed, then further drop for Silver is very much expected.

Now if somehow another ceasefire is announced or the US-IR negotiations resumes or leads to something, Silver could bounce back up, currently expecting it to go below the 57.21 level to sweep the minor sellside liquidity there, and then there's the Bullish OB that could send Silver back up.
Also, President Trump has announced that the US will take control of the Strait of Hormuz, if this happens, Silver could bounce back up.

Jul 14

Trade closed: target reached

By examining the 4H chart of Silver we can see that it exactly moved the way we suspected. It swept the liquidity below the 57.21 level and then bounced back up from the Bullish OB, and now with the release of CPI news, it surged in price and went as high as 58.66, and currently it's being traded at around 59.34 level.

From here on, Silver has to go through the Supply Zone ahead of it, which it tested but have been rejected by it. If it goes above the Supply Zone and stabilizes there, next target for it will be at above the 60.76 level to sweep the Buyside Liquidity pool there.