Silver(xagusd) like gold has broken out of a 2 year long consolidation (accumulation) as well. Now we are looking for lower targets on both metals. Silver can be seen failing to retest the breakout point at 21.5 and therefore, chances are we will see it down.
Technical aspects:
1- A rising wedge consolidation and continuation pattern observed on XAGUSD (drawn in green), which breaks out at 18.66
2- We might be having a local head and shoulders situation that are targeting 18.46 but they confirm at 18.66 breakout, although it is small 100 pips target but it is almost a sure shot
3- Silver failed to break higher than the public participation darvas box so we are still projecting downwards
4- That Demand zone I marked with red slit is the most important local zone that needs to be broken to expect further low targets
5- If the Demand zone fails to support the silver metal price, projected targets lie between 14.6-16.2
Note: This analysis is valid as long as we do not break higher than 21.5 accumulation breakout price level!
Best of Luck! Happy Trading and Happier Profits :-)
Technical aspects:
1- A rising wedge consolidation and continuation pattern observed on XAGUSD (drawn in green), which breaks out at 18.66
2- We might be having a local head and shoulders situation that are targeting 18.46 but they confirm at 18.66 breakout, although it is small 100 pips target but it is almost a sure shot
3- Silver failed to break higher than the public participation darvas box so we are still projecting downwards
4- That Demand zone I marked with red slit is the most important local zone that needs to be broken to expect further low targets
5- If the Demand zone fails to support the silver metal price, projected targets lie between 14.6-16.2
Note: This analysis is valid as long as we do not break higher than 21.5 accumulation breakout price level!
Best of Luck! Happy Trading and Happier Profits :-)
