We are going to be analysing the silver shiny metal starting from weekly time frame and break down the structure to 4 hourly time frame so our directions are on the same page from higher time frames to the lower ones to execute our positions at the right place and time. In weekly time frame XAGUSD had made a double top with a minor structure of missing to provide a complete tripple top structure as well but with an extended corrective consolidation within the higher range bound i.e 28.240, 24.467 and 22.567. The only thing to worry about in case of bulls taking over is our weekly exponential moving average 50 below the current market price which might again become the point of bullish reversal. 26.64 can become a target of attainment by the silver commodity if it stays above the aforementioned zone. In daily we have a more clear structure of XAGUSD in terms of bears still in control because of our exponential moving average 50 and 200 on top along with 5 wave bearish impulsive structure. This formation of the market at the moment can also be a bearish correction of higher degree but the scenario would only be confirmed after we get an impulsive fractal confirmation at either ends of our exponential moving averages in daily. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

XAGUSD has been following the fibb retracement levels very keenly; after breaking below 61.8%, the commodity went for 50% fibb and then retraced back to 61.8% but didnt provide us with a bullish confirmation above, instead retraced lower towards 38.2% which is calling for a much stronger continuation of bearish trend towards 23.6% fibb as our targeted destination. 26.0 price action should be taken as a major zone, a bearish impulsive closing below the exponential moving averages 50 and 200 would mark the continuation of handing over control to bears. 23.715 is an important and high in liquidity supply and demand zone which would get more entries executed by bulls so take exit from your selling positions when the market reaches the aforementioned level. 

XAGUSD D1

Aug 02 2021