XAGUSD. Trading opportunity
Hello traders and investors!
I reviewed the assets and highlighted silver as an interesting opportunity for trades next week. For example, in gold, on the daily timeframe, the price has broken out of a range, and it’s hard to predict how far it will go. In silver, the targets are clearer.
Weekly Timeframe
On the weekly timeframe, there’s a bullish trend. The last upward impulse started from the 17.559 level. The most recent sub-impulse within that impulse began at the 26.0185 level. At the end of the impulse, a seller's zone formed after the seller absorbed a buyer's candle with growing volume, which has already been tested by the buyer—the test level is 29.2285 (seller's zone marked by a red rectangle on the chart). The seller's candle at the test level had the highest volume in a year, but the result was just a shadow: the body of the candle couldn’t close below the shadow of the previous candle. The latest weekly candle, with falling volume, absorbed the seller’s candle. This indicates that although the seller tried to resume the downward movement from their zone, they have been unsuccessful so far.
Daily Timeframe
On the daily timeframe, the price has formed a range that began in April. The upper boundary is 32.5185, and the lower boundary is 26.0185.
The seller’s 7-8 impulse has played out, and now the buyer's 8-9 impulse is active, with a potential target of 31.755. A buyer's zone has formed at the base of the new 8-9 buyer’s impulse after the buyer absorbed the seller's candle from August 5th, which had growing volume (buyer’s zone marked by a blue rectangle on the chart). Note the volume of the seller’s candle from August 5th—it’s the highest in several months.
Thus, on both the weekly and daily timeframes, the priority is on buying.
There are obstacles on the buyer's path that need to be monitored. The first obstacle is the start of the last sub-impulse in the seller's 7-8 impulse (29.2285), and the second obstacle is the previous weekly high (30.1365), where a seller's zone has also formed.
Buying Strategy
For trade setups, you could consider the 4-hour timeframe. On this timeframe, the price has formed a range with an upper boundary of 29.2285 and a lower boundary of 26.4710.
You could, for example, look for buying opportunities from the buyer’s defense of the lower boundary of the range or after a breakout to the upside and the buyer's defense of that breakout.
I reviewed the assets and highlighted silver as an interesting opportunity for trades next week. For example, in gold, on the daily timeframe, the price has broken out of a range, and it’s hard to predict how far it will go. In silver, the targets are clearer.
Weekly Timeframe
On the weekly timeframe, there’s a bullish trend. The last upward impulse started from the 17.559 level. The most recent sub-impulse within that impulse began at the 26.0185 level. At the end of the impulse, a seller's zone formed after the seller absorbed a buyer's candle with growing volume, which has already been tested by the buyer—the test level is 29.2285 (seller's zone marked by a red rectangle on the chart). The seller's candle at the test level had the highest volume in a year, but the result was just a shadow: the body of the candle couldn’t close below the shadow of the previous candle. The latest weekly candle, with falling volume, absorbed the seller’s candle. This indicates that although the seller tried to resume the downward movement from their zone, they have been unsuccessful so far.
Daily Timeframe
On the daily timeframe, the price has formed a range that began in April. The upper boundary is 32.5185, and the lower boundary is 26.0185.
The seller’s 7-8 impulse has played out, and now the buyer's 8-9 impulse is active, with a potential target of 31.755. A buyer's zone has formed at the base of the new 8-9 buyer’s impulse after the buyer absorbed the seller's candle from August 5th, which had growing volume (buyer’s zone marked by a blue rectangle on the chart). Note the volume of the seller’s candle from August 5th—it’s the highest in several months.
Thus, on both the weekly and daily timeframes, the priority is on buying.
There are obstacles on the buyer's path that need to be monitored. The first obstacle is the start of the last sub-impulse in the seller's 7-8 impulse (29.2285), and the second obstacle is the previous weekly high (30.1365), where a seller's zone has also formed.
Buying Strategy
For trade setups, you could consider the 4-hour timeframe. On this timeframe, the price has formed a range with an upper boundary of 29.2285 and a lower boundary of 26.4710.
You could, for example, look for buying opportunities from the buyer’s defense of the lower boundary of the range or after a breakout to the upside and the buyer's defense of that breakout.
Note
Where is it reasonable to look for a buying pattern?
On the 2-hour timeframe, there is a sideways range. It makes sense to look for buying opportunities near the lower boundary of the range.
Note
In the initial post, I mentioned obstacles on the buyer's path. The buyer easily passed the first obstacle (the start of the last sub-impulse in the seller's vector 7-8: 29.2285), but couldn't pass the second obstacle (the previous weekly high - 30.1365). A range has formed on the 4-hour timeframe. And we know how to trade within ranges. Currently, the buyer's vector 10-11 is in play, with a potential target of 30.106.
On the daily timeframe, the target of 31.755 will be relevant if the buyer wins within the 4-hour range: overcoming 30.1915 and defending it.
Note
The seller has won in the range. There is a short trend on both the 4-hour and 1-hour timeframes. Reaching the daily target of 31.755 is under question. To achieve this, the price must at least be pushed back into the last range (above 29).
At present, I have identified three price zones where the buyer could potentially resume. The third zone is at 50% of the last monthly impulse (25.03875). If the price intends to move to the 35 area, it might first drop into zone 3.
Note
The buyer has resumed from the first zone. On the 4-hour timeframe, it has overcome the beginning of the seller's last impulse (28.672).
28.7885 is the lower boundary of the previous range on the 4-hour timeframe (point 8). Notice how precisely the previous 4-hour candle closed. Let’s see if the next candle closes above the previous one's wick and if the buyer has enough strength.
Theoretically, one could look for buys as long as the buyer is defending 28.672.
However, I’m more interested in the 28.9745 level. It is responsible for the seller’s defense of the breakdown from the previous range. If this level is broken and held by the buyer, it could be worth looking for buying opportunities.
Note
Look at how beautifully the 4-hour candles closed in relation to the levels.
I assume the 27.7075 level won’t hold under this approach.
Good luck with your trading!
t.me/user_friendly_trading
t.me/user_friendly_trading
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.