Silver (XAG/USD) is currently trading within a bearish rising wedge formation on the 8-hour timeframe, and the market structure is hinting at a potential reversal to the downside. The confluence of resistance zones, pattern anatomy, and historical price action all point to a high-probability short setup, especially if key support levels are breached.
📈 Pattern Analysis: Rising Wedge
A rising wedge is typically a bearish chart pattern that forms when price consolidates between two upward sloping trendlines. However, the upper trendline rises at a slower pace than the lower one—indicating decelerating bullish strength. It often precedes a bearish breakout, especially if volume decreases near the apex.
In this case, the wedge is forming just below a major resistance zone around the $34.00 area, adding weight to the bearish scenario.
🔹 Key Technical Levels:
🟥 Resistance Zone ($33.80–$34.80): Price has tested and rejected this area multiple times in recent weeks. It marks a clear liquidity zone where sellers are in control.
🟩 Support Zone ($29.50–$30.30): This zone has provided strong support in previous retracements. If broken, it may flip into resistance upon retest.
🟦 Retest Zone (~$31.00–$31.50): If the wedge breaks downward, price may retest this area—creating an opportunity for traders to enter short with better risk-reward.
🎯 Final Bearish Target: $26.85: This level is derived from the height of the wedge and prior demand zones, making it a strong target area in a fully played-out bearish move.
🧠 Market Structure & Sentiment:
Volume Analysis – Volume has been tapering off as the price squeezes within the wedge, which is a typical trait of rising wedges. A volume spike on breakdown would serve as confirmation.
Trend Analysis – While the overall trend in the medium term has been bullish, the weakening upward momentum suggests that buyers are losing strength, and sellers may regain control soon.
Rejection Candles – Several recent candle wicks above the $33.50 zone show clear rejection and failure to close above, reinforcing the resistance level.
📊 Trade Plan (Educational Purposes Only):
Criteria Details
Bias Bearish (Rising Wedge Breakdown)
Entry Option 1 On breakdown of wedge + retest
Entry Option 2 Aggressive entry on breakdown candle close below $31.50
Stop Loss Above $33.80 (last resistance)
Take Profit 1 $30.00 (support zone)
Take Profit 2 $28.00 (partial exit)
Take Profit 3 $26.85 (final target)
📌 Trading Psychology Note:
Traders should remain patient and avoid entering prematurely. Let the pattern confirm itself with a clean break and retest. Risk management is critical—wedge patterns can also fake out before reversing hard.
🧾 Summary:
Silver is nearing the end of a rising wedge pattern, right under a heavy resistance zone. Historical behavior, weakening momentum, and classic wedge structure suggest a potential bearish reversal. A break below the wedge support and a retest around $31.00 could present a high-probability short trade setup targeting the $26.85 area.
Keep this chart on watch. A decisive move is likely coming soon.
📈 Pattern Analysis: Rising Wedge
A rising wedge is typically a bearish chart pattern that forms when price consolidates between two upward sloping trendlines. However, the upper trendline rises at a slower pace than the lower one—indicating decelerating bullish strength. It often precedes a bearish breakout, especially if volume decreases near the apex.
In this case, the wedge is forming just below a major resistance zone around the $34.00 area, adding weight to the bearish scenario.
🔹 Key Technical Levels:
🟥 Resistance Zone ($33.80–$34.80): Price has tested and rejected this area multiple times in recent weeks. It marks a clear liquidity zone where sellers are in control.
🟩 Support Zone ($29.50–$30.30): This zone has provided strong support in previous retracements. If broken, it may flip into resistance upon retest.
🟦 Retest Zone (~$31.00–$31.50): If the wedge breaks downward, price may retest this area—creating an opportunity for traders to enter short with better risk-reward.
🎯 Final Bearish Target: $26.85: This level is derived from the height of the wedge and prior demand zones, making it a strong target area in a fully played-out bearish move.
🧠 Market Structure & Sentiment:
Volume Analysis – Volume has been tapering off as the price squeezes within the wedge, which is a typical trait of rising wedges. A volume spike on breakdown would serve as confirmation.
Trend Analysis – While the overall trend in the medium term has been bullish, the weakening upward momentum suggests that buyers are losing strength, and sellers may regain control soon.
Rejection Candles – Several recent candle wicks above the $33.50 zone show clear rejection and failure to close above, reinforcing the resistance level.
📊 Trade Plan (Educational Purposes Only):
Criteria Details
Bias Bearish (Rising Wedge Breakdown)
Entry Option 1 On breakdown of wedge + retest
Entry Option 2 Aggressive entry on breakdown candle close below $31.50
Stop Loss Above $33.80 (last resistance)
Take Profit 1 $30.00 (support zone)
Take Profit 2 $28.00 (partial exit)
Take Profit 3 $26.85 (final target)
📌 Trading Psychology Note:
Traders should remain patient and avoid entering prematurely. Let the pattern confirm itself with a clean break and retest. Risk management is critical—wedge patterns can also fake out before reversing hard.
🧾 Summary:
Silver is nearing the end of a rising wedge pattern, right under a heavy resistance zone. Historical behavior, weakening momentum, and classic wedge structure suggest a potential bearish reversal. A break below the wedge support and a retest around $31.00 could present a high-probability short trade setup targeting the $26.85 area.
Keep this chart on watch. A decisive move is likely coming soon.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
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.