Silver Prices Rebounding from Harmonic Support
The price of spot silver versus the US dollar (XAG/USD) remains entrenched within a moderate uptrend. This tends to attract trend-following systems that attempt to buy breakouts of key areas of resistance and buy into corrections.
As evident from the H4 chart, price action has rebounded from an equal AB=CD harmonic formation at $26.79. Traders commonly enter long from the 100% projection ratio and position protective stop-loss orders beneath the 1.272% Fibonacci projection ratio ($26.19) and target the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D ($27.87 and $28.60, respectively).
As evident from the H4 chart, price action has rebounded from an equal AB=CD harmonic formation at $26.79. Traders commonly enter long from the 100% projection ratio and position protective stop-loss orders beneath the 1.272% Fibonacci projection ratio ($26.19) and target the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D ($27.87 and $28.60, respectively).
Comment:
The first upside objective – the 38.2% Fibonacci retracement ratio – is now within a stone's throw of welcoming price action.
