XAG/USD 1H Chart: Awaits bullish confirmation
Silver has been trading in a triangle-like formation during the past three months. The bearish channel which guided the pair since mid-January was breached to the upside last week, thus entering a minor period of consolidation. It is likewise apparent that the rate has remained near the upper triangle boundary for a few sessions.
Taking into account these two factors, it is likely that the northern side of this formation surrenders next week. A possible near-term target is the 50.0% Fibonacci retracement near 17.00. This area has proved to be a strong resistance level that might eventually let bears to take over the market once again.
In order for this bullish scenario to occur, Silver has to overcome the combined resistance of the 55-, 100– and 200-hour SMAs at 16.50. In case this does not occur, the most probable downside target is the 2018 low of 16.17.
Taking into account these two factors, it is likely that the northern side of this formation surrenders next week. A possible near-term target is the 50.0% Fibonacci retracement near 17.00. This area has proved to be a strong resistance level that might eventually let bears to take over the market once again.
In order for this bullish scenario to occur, Silver has to overcome the combined resistance of the 55-, 100– and 200-hour SMAs at 16.50. In case this does not occur, the most probable downside target is the 2018 low of 16.17.