Silver (XAGUSD) how to construct a trade:
Medium bullish take:
XAGUSD is trading around the $30 price level for the first time in years. Is there a trade here? Could we see $40 by EOY? Let’s draw some charts:
So according to our charts, we should expect a bounce above $27 Be mindful, there are exogenous events that push the price around. Shifts in the macro landscape will impact the path price takes.
For details, I've included a fun GIF, animating the construction of this chart. Check out my twitter for more!
NOTE: Original idea posted 7/23 https://www.tradingview.com/chart/SILVER/VsWPkgpC-Silver-to-consolidate-break-above-30-by-November/
XAGUSD is trading around the $30 price level for the first time in years. Is there a trade here? Could we see $40 by EOY? Let’s draw some charts:- We're trading in a Bullflag at the $30 level
- Triple top, we're not quite ready to hold above the level
- Find nearby price targets
- Establish long term support lines
- Use momentum indicators and price action to draw a reasonable path which engages the price structures you've established.
So according to our charts, we should expect a bounce above $27 Be mindful, there are exogenous events that push the price around. Shifts in the macro landscape will impact the path price takes.
For details, I've included a fun GIF, animating the construction of this chart. Check out my twitter for more!
NOTE: Original idea posted 7/23 https://www.tradingview.com/chart/SILVER/VsWPkgpC-Silver-to-consolidate-break-above-30-by-November/
Note
Alright, its been a couple of months - time for a Silver update.
It looks like XAGUSD is following our map. We just experienced the anticipated pullback from the $31 level (in yellow) we marked in July. We're watching the price to see if we bounce from the horizontal $30 level or if we need *one more* higher low before taking off! Regardless, we're on track for our break above $30, with a strong chance we can run towards $35+ depending on Fed decisions and whatever US election or geopolitical shocks we see before EOY. Keep stacking, folks!
-dawson
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