On 2nd Aug we published our analysis along with a signal on the silver commodity - anticipating bearish fall ahead and the market did so with a strong dovish impulse in daily starting from 25.61 and ending at 22.20. Our targeted destination was 24.42 while the silver metal took a sharp bullish reversal 42 pips ahead of completely reversing the gains made between December 2020 and June 2021. Our perceptions were based upon mainly on weekly time frame where 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. Then we analyzed the daily chart where we had a more clear structure of XAGUSD in terms of bears in control because of our exponential moving average 50 and 200 on top along with 5 wave bearish impulsive structure. We also suggested that formation of the market coudlve been a bearish correction of higher degree but the scenario confirmed after we got an impulsive fractal confirmation below our exponential moving averages in daily.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : 

Now, 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 along 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. 

XAGUSD

Aug 18 2021