Kudiiee

SILVER | Strong Resistance | Fibonacci Extension Targets

OANDA:XAGUSD   Silver / U.S. Dollar
Todays analysis – SILVER - Consolidating within a long term descending triangle as it nears apex.

Points to consider:
- Strong resistance
- 2.272 Fibonacci extension target
- RSI above 50
- Stochastics overextended
- Low volume

SILVER unable to break structural resistance with multiple failed re-tests, however, price is quickly bought up as it retraces from resistance indicative of buyers being present, setting a slightly bullish bias in the market.

A bullish break of this formation validates the next Fibonacci extension target of 2.272; also in confluence with structural resistance. Whereas a bearish break of this formation, price is likely to find local support at the 1 Fibonacci extension target.

RSI is currently testing 50, recovering from overbought conditions. A bullish break requires the RSI to range above 50, signifying strength in the market.

The stochastic RSI recovering from oversold conditions with ample space for an increase in momentum.

Volume is clearly declining and remaining below average. This is usually an indication of an influx being imminent, likely to coincide with the breakout.

Overall, in my opinion, a break and candle close above resistance validate next immediate target of 2.272 Fibonacci extension . The break needs to be backed with increasing volume to avoid any false breaks.

What are your thoughts? Let me know in the comments below!

And if you’ve read this far - thank you for following my work and development as a trader!

As always,

Focus on you, and the money will too!

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