We have a strong supply and demand zone between 20.70 and 21.76 in weekly time frame that can become a point of strong bullish reversal again but for that we would have to wait until the market gets there. Silver trading below our intraday exponential moving averages 8,13,21 and way below our exponential moving averages 50 and 200 in daily along with forming a bearish patter below strong price action one i.e 23.74-24.0. On the other end XAGUSD is still somewhat in oversold conditions in daily time frame but has recovered in four hourly chart while trading below our exponential moving average 50 and 23.6 fibb retracement level. Keeping the aforementioned in view, we will stay short on the silver metal until we see the consolidation ending in weekly time frame with a certain breakout.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market price action, XAGUSD is trading below the support turned resistance 23.95 while flirting with 23.6% fibb retracement level at the same time. From the ichimoku perspective the silver metal is stuck between Tenkan Sen and Kijun sen of the ichimoku with tone of consolidation below our strong price action 23.95. An impulsive bearish closing below 22.91 would push the XAGUSD towards 22.07 and 20.64. In case we get a closing above our support turned resistance 23.95 - would lead the silver metal towards exponential moving average 50 and 200 in daily i.e 24.93 and 25.23. The hawkish tone might also provide some extra momentum in terms of kissing 25.63 i.e one of our major supports turned resistance now near Senkou Span B of the ichimoku. 

XAGUSD

Aug 26 2021

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