🔎 Key Zones and Annotations Explained
🟥 Resistance Level (Supply Zone):
Marked in red, this level represents a historical supply area where sellers consistently outweigh buyers.
Multiple rejections from this zone confirm its strength.
🔄 RS Interchange (Support-Turned-Resistance):
This area around 26.00 – 27.50 has previously acted as support and could now act as resistance if price attempts to retrace upward after breaking down.
📉 Bearish Projection Path:
A potential price trajectory is illustrated with a zigzagging downward pattern, reflecting corrective moves and retests.
If the neckline is breached convincingly, this projection suggests continued bearish follow-through toward the 22.00 region.
🎯 Trade Setup and Risk Plan
Entry Trigger:
Short position considered after confirmation of neckline break (~29.50), ideally on a weekly candle close below this level or a successful bearish retest of broken support.
Stop Loss Placement:
Above the resistance highs at 35.57, which would invalidate the double top and signal possible trend continuation.
Profit Target:
Based on the measured move of the double top (height from resistance to neckline), we target the 22.42 – 22.46 region.
This aligns with previous support and a psychological round level, making it a strong candidate for price reaction.
⚠️ Risk Management Considerations
Always use defined position sizing and risk-reward ratios. A minimum of 1:2 RR is recommended.
Confirm breakdowns with volume spikes, momentum divergence, or break of trendlines for added confluence.
Keep an eye on macroeconomic data (like inflation rates, Fed interest rate decisions, and USD index strength) which can heavily impact the value of precious metals like Silver.
📘 Educational Insight: Why Double Tops Work
The double top is a psychological failure pattern. The first top attracts buyers expecting a breakout, but when price returns to that level and fails again, it often triggers mass liquidation and new short entries, especially when the neckline support fails. This builds downward momentum, making it a favorite pattern among swing and position traders.
🏁 Conclusion
This weekly chart of XAGUSD paints a clear picture: Silver may have topped out in the short-to-mid term. If the double top confirms and neckline breaks, expect a sizable correction back into the lower $20s. The risk is clearly defined, and the reward potential is high. Patience and confirmation are key.
💬 What Do You Think?
Do you agree with this bearish outlook on Silver? Are you waiting for confirmation before entering? Drop your thoughts or analysis below!
📌 Tags/Hashtags
#XAGUSD #Silver #DoubleTop #TechnicalAnalysis #ChartPatterns #SwingTrading #Commodities #PriceAction #Forex #BearishSetup #Metals #TradingView #GoldAndSilver #ShortTradeSetup
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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.