Friday, October 22, 2021


XAG/USD consolidated beneath six-week tops, round 38.2% Fibo.

Silver was seen consolidating its latest robust transfer as much as multi-week tops. The set-up favours bullish merchants and helps…

By Staff , in Silver , at October 22, 2021


  • Silver was seen consolidating its latest robust transfer as much as multi-week tops.
  • The set-up favours bullish merchants and helps prospects for additional positive factors.
  • Any slide beneath the $24.00 mark might be seen as a dip-buying alternative.

Silver now appears to have entered a bullish consolidation section and was seen oscillating in a spread just under mid-$24.00s, or six-week tops touched earlier this Thursday.

From a technical perspective, the in a single day robust follow-through optimistic transfer validated this week’s breakthrough a downward-sloping trend-line extending from July month-to-month swing highs. This comes on the again of the latest inverted head and shoulders bullish breakout and helps prospects for added near-term positive factors.

The constructive set-up is strengthened by bullish technical indicators, that are nonetheless removed from being within the overbought zone. That stated, barely overbought RSI (14) on the 4-hour chart failed to help the XAG/USD to capitalize on its transfer past the 38.2% Fibonacci stage of the $28.75-$21.42 downfall, no less than for now.

However, the bias stays tilted firmly in favour of bullish merchants. Therefore, a subsequent transfer in the direction of testing September month-to-month swing highs, across the $24.80-85 area, stays a definite risk. Bulls may ultimately intention to reclaim the important thing $25.00 psychological mark, which coincides with the 50% Fibo. stage.

On the flip facet, the $24.00 round-figure mark now appears to guard the fast draw back. Any subsequent decline might be seen as a shopping for alternative close to the $23.75-70 area. This, in flip, ought to assist restrict the corrective pullback close to the talked about trend-line assist breakpoint, across the $23.50-45 area.

Silver day by day chart

fxsoriginal

Technical ranges to look at

 



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