Created
: 2024.09.18
2024.09.18 22:12
Silver (XAG/USD) has reached a key trendline in the $30s and stalled. It has posted several Doji-like candlestick patterns over the last few days. Dojis are days where the price closes very near to the level where it opened. This is a sign of market indecision.
Silver has been in an uptrend ever since the early August lows, even though it also corrected back during the second half of the month. As it is a principle of technical analysis that "the trend is your friend" the uptrend in Silver is more likely than not to extend. Therefore, it could go higher. A decisive break above the trendline would confirm a breakout and a follow-through to $32.94, the 0.618 Fibonacci ratio of C leg extended higher.
A decisive break would be one accompanied by a long green candlestick that broke clearly above the level and closed near its high, or three candlesticks in a row that broke above the level.
Although price action has formed several Doji Japanese candles over recent days it has not formed a reversal candlestick pattern such as a Shooting Star, Bearish Engulfing or Hanging Man, for example. As such it is still too early to say the precious metal will correct back lower.
Silver has probably completed a Measured Move price pattern from the August 8 low. Such patterns consist of three waves in a zig-zag. It is another characteristic of these patterns that waves A and C are usually of a similar length. In the case of Silver, A and C reached a similar length. This further suggests prices will pause and take a rest for a while, or even pull back.
Created
: 2024.09.18
Last updated
: 2024.09.18
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy