XAG/USD | Barriers ahead to reach 90 level again!

May 12

By examining the 4H chart of Silver we can see that after yesterday's surge, reaching 87.21 and going inside the supply zone, it finally dropped and experienced a correction, going as low as 83.07, before bouncing back up and currently it's being traded at 85.20.

At the moment, I expect Silver to retest the supply zone and then go towards the Hourly IFVG above. Silver must break above the 87.00 resistance level strongly in order to be able to go through the Supply Zone and then test the IFVG at 89.63-90.54 zone.

However, if Silver is rejected by the Supply Zone, it may drop to 83.60 level which is the first support for it not to fall further, but if it does drop lower, next targets will be at 83.05, 81.90 and 80.80 levels respectively.

May 13

Trade active

As you can see in the 4H chart of XAGUSD, it has been struggling to go through the Supply zone after multiple efforts, and has dropped out of the zone once more, currently being traded at 86.23.

Considering that Silver has been consolidating in the same zone for a while now and has been struggling to break above it, I expect drop in price for it. First support will be at 85.50, then the 84.00 level and finally 83.05 will be awaiting Silver inside the Demand Zone.

Currently Silver is showing a weak tendency to go higher back to the $90 range, and it seems the sellers are in control of the situation for now. I expect Silver to bounce back up from the Demand Zone to retest the Supply Zone once more.

As long as Silver stays below the 87.00 level, it remains bearish and further drop is expected of it. However, a strong break above the $87.00 level could send Silver towards the $90 level.

May 14

Trade closed manually

By analyzing the 4H chart of XAGUSD we can see that it managed to break above the Supply Zone and go up all the way to 89.37 level, but then it started to drop, going as low as 85.96, and is currently being traded at 86.35.

There's a major Demand Zone at 83.05 to 84.47, I expect that if Silver is to drop lower, It'll go towards the supply zone and then bounces back up from there.

Targets for Silver: 86.00, 85.65, 85.30, 85.00, 84.60, 84.30 and 84.00