Silver has been consolidating itself since two weeks between 26.75 and 25.80 with a throw to EMA50 once as well after which it retraced towards its daily price action. In the current market scenario the commodity is trading below our daily and weekly pivots while the monthly pivot resides at 26.70 towards which the market will shift its head. The RSI is near 41.0 while the MACD is shifting its momentum from the bearish side towards bullish most probably. Strong support has been created by silver at 25.70 with our EMA200 at 25.40. According the wave structure, it seems like the shiny white metal has completed its correction and is stuck in a range bound with not much liquidity or volatilty supporting uncertainity in the market. We are considering this consolidation as an expected move to the upside as we get breached with the daily highs and pips above the daily and weekly pivots. 

BULLISH & BEARISH CONDITIONS/ POSSIBILITIES :

What we are looking forward to is that the consolidation is being made near 38.2 fibb level which shouldve pushed silver down for being stuck in the range bound for more than 2 weeks, but the commodity channel index is also suggesting for its head to be lifted onto the upside and then we can take the support it is providing as a good upthrust to silver. Our target destination is near to 61.8 fibb level which will be met as soon as we see our weekly price action broken and our trades can be executed near the weekly and daily pivots. 27.90 and 28.20 will be our take profit areas for silver will be carrying its bullish stance from the current market scenario but the advice is to wait until an impulse is found for it to take an exit from the consolidation zone.  

XAGUSD D1

Jul 12 2021

1