XAGUSD after failing to break above the exponential moving average 50 in the weekly time frame, a clean bearish reversal was the next move which now has broken Sept 2020s low i.e the major support zone - that supported the consolidation behaviour of higher degree on the silver metal. XAGUSD has reversed all the gains made by the commodity in early 2021 and has provided us with a lowest low on the daily chart by a touch down at 21.35. The dovish maneuver followed in accordance to the anticipations and expectations published in our previous analysis because of sustaining below the exponential moving averages 50 and 200 - along with 23.6% fibo retracement level 23.76, which confirmed that the silver metal had 21.35 as its next target. From a technical perspective, the recent positive move witnessed over the past three trading sessions stalled near a resistance marked by the 38.2% Fibonacci level of the 24.967-21.35 downfall. The mentioned barrier coincides with exponential moving average 100 on the 4-hour chart and should now act as a key pivotal point for short-term traders.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Technical indicators on hourly charts have again started moving into the positive territory but are yet to gain any meaningful traction on the daily chart. Any subsequent move beyond the mentioned confluence hurdle might still struggle to find acceptance above the 23.0 mark and falter near the 50% Fibo level resistance. On the flip side, immediate support is pegged near the 22.25 area. A convincing break below might turn the XAG/USD vulnerable to break below the 22.00 mark and drop back towards challenging last week's swing lows, around the 21.45-40 region.

Has we entered the dovish trend on silver ?

Oct 05 2021