XAGUSD Spot Silver LONG - Reversal from Double Bottom
XAGUSDSpot silver put in a triple top in early March into early April on the daily chart.
It then descended over the next three months in what may end up being the
leading side of a cup and handle pattern into a bottom about July 13th.
Spot silver then rose a bit over the next five weeks and now has retested
the bottom now forming a double bottom.
Relative strength was gradually decreasing over this time while underneath
its Ichimoku cloud. However beginning about July 15th, the relative strength
began increasing and is now above the cloud. The leading cloud edge to
the right is red and rising. This is a hint of bullish divergence perhaps
forecasting the reversal is in progress.
That said, I see spot silver reversing to an uptrend which could also
be the right side of a cup and handle pattern underway. If formed
a cup and handle pattern suggests bullish continuation. I see this
an an excellent swing long setup with potentially 40% upside.
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