XAG/USD | Lower and going towards the $73 level!

May 15

By analyzing the 4H chart of Silver we can see that after it reached the supply zone, it started to drop heavily from 89.30 all the way to 76.30 level! And is now being traded at 76.60. This drop means that all of our targets from previous analysis were reached.

I expect Silver to drop all the way towards the Demand Zone, meaning that the April 13th and May 4th NWOGs which are acting as supports, will be broken down!

Key Demand Zone: 72.76-73.32

The strait of Hormuz being still closed and the high demand for Oil is dropping silver towards the lower levels and as long as the uncertainty around the war continues, Further drop is expected for Silver.

May 19

Trade active

As you can see in the Silver chart, after yesterday's open, it did reach the $73 zone, going as low as 73.86 before going back up to 78.89, then it dropped again and is now being traded at 75.87.

At the moment, I expect Silver to drop below the May 4th NWOG and go towards the Demand Zone, sweeping the sellside liquidity in the process and then break below the April 13 NWOG Low.

However, if Silver manages to stabilize above the May 4th NWOG, then it can go higher towards the the May 11th NWOG Low, sweeping the Buyside Liquidity and then move towards the $80 psychological resistance.

May 19

Trade closed: target reached

$73 reached, position closed.