The gold/silver ratio continued past the 73.37 resistance line on Friday but bearish CCI divergence has formed over the last week. A hammer candlestick pattern also formed on Friday sending signals that rally could be over. RSI shows that the pair is overbought.
Gold just hit overbought levels against Silver!
XAUXAG is in a daily corrective structure. Currently its making a daily (b) corrective wave. I am expecting one more up move as a corrective wave before the big fall in this pair! Just showing u the relation of Gold and Silver so u guys can continue with your gold and silver trades! So keep an eye have a good weekend! Wanna see something more amazing ?? Scroll...
gold/silver-week-rsi-green_short-red_long
Hi guys . Keep watch on XAUXAG . If it breaks the cloud we can except buy trend . G'day Guys.
I would be positioned short the ratio (net long silver/gold) as the ratio looks set up in a bear flag, suggesting medium term downside on the weekly chart.
very high probability trade to the downside .... lets see
The Gold/Silver ratio shows an interesting setup here, and correlation to inverted SPX, which points to the nature of the ratio's movement tied to risk off/on phases. This has to do with the real world applications silver has as an industrial metal, compared to gold's function as a store of value and risk off protection. I think we can see a long term decline,...
XAUXAG is currently forming a descending triangle and we expect price to break out lower towards the main trendline in play.