XAGUSD: Reactionary Bearish Wave Could Turn Into ZIG-ZAG
I turned bearish on XAGUSD since prices broke above the psychological multiyear triangle (15.56 intersection).
With Primary 3 well out the way and Intermediate A seem completed we are now looking at our options with respect to the deepness of the current reactionary structure.
Since we are moving within motive intermediate B, hence looking for a potential turn-around level, it may worth putting a tag at the Golden Ratio at 18.9514. That level is not only in confluence with the minute open triangle correction pattern but gives us a structurally correct target for minor and intermediate waves C, and cycle wave 4.
In the scenario prices stop and reverse down we could have a zig-zag pattern. The break of 17.79 could take minor A down at 17.07 and minor C at 15.91.
The zig-zag pattern would require minor B to stop and continue lower below the 17.79 level.
Note the FE levels above are in confluence with intermediate 4 low and minor 4 low!
Should bears take over once again intermediate C will be on its way nevertheless!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
With Primary 3 well out the way and Intermediate A seem completed we are now looking at our options with respect to the deepness of the current reactionary structure.
Since we are moving within motive intermediate B, hence looking for a potential turn-around level, it may worth putting a tag at the Golden Ratio at 18.9514. That level is not only in confluence with the minute open triangle correction pattern but gives us a structurally correct target for minor and intermediate waves C, and cycle wave 4.
In the scenario prices stop and reverse down we could have a zig-zag pattern. The break of 17.79 could take minor A down at 17.07 and minor C at 15.91.
The zig-zag pattern would require minor B to stop and continue lower below the 17.79 level.
Note the FE levels above are in confluence with intermediate 4 low and minor 4 low!
Should bears take over once again intermediate C will be on its way nevertheless!
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
Comment:
Latter is the case, with a larger triangle in formation. Expect 18.95 correction and down, or invalidation
Comment:
1st target taken. Looking at 16 next. Otherwise, double zig-zag would be invalidated.
