Silver Prices Rebounding from Harmonic Support
Updated
The price of spot silver versus the US dollar (XAG/USD) remains entrenched within a moderate uptrend. This tends to attract trend-following systems that attempt to buy breakouts of key areas of resistance and buy into corrections.
As evident from the H4 chart, price action has rebounded from an equal AB=CD harmonic formation at $26.79. Traders commonly enter long from the 100% projection ratio and position protective stop-loss orders beneath the 1.272% Fibonacci projection ratio ($26.19) and target the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D ($27.87 and $28.60, respectively).
As evident from the H4 chart, price action has rebounded from an equal AB=CD harmonic formation at $26.79. Traders commonly enter long from the 100% projection ratio and position protective stop-loss orders beneath the 1.272% Fibonacci projection ratio ($26.19) and target the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D ($27.87 and $28.60, respectively).
Note
The first upside objective – the 38.2% Fibonacci retracement ratio – is now within a stone's throw of welcoming price action.
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.