Silver (XAG/USD) - Bearish Breakdown from Rising Wedge!Market Overview:
The Silver (XAG/USD) 1-hour chart reveals a Rising Wedge pattern, which is a well-known bearish reversal formation. This suggests that the recent bullish trend is losing momentum, and a breakdown could lead to a significant price decline.
🔹 Key Technical Analysis
1️⃣ Rising Wedge Formation & Breakdown
The price has been moving within a rising wedge, characterized by higher highs and higher lows but with weakening momentum.
A breakdown has occurred, confirming the bearish structure as the price has failed to sustain higher levels.
Historically, when a rising wedge breaks to the downside, price tends to drop by the same height as the wedge itself, which aligns with our projected target zone.
2️⃣ Price Action & Retest Possibility
After the breakdown, a retest of the broken wedge support (now resistance) around $33.50 - $33.80 could provide a potential short-selling opportunity.
If price fails to reclaim the wedge support, further downside pressure is expected.
3️⃣ Downside Target & Support Zone
The measured move suggests a decline towards the $31.00 - $30.60 region, which coincides with a strong historical support zone.
This area is highlighted as a potential profit-taking level for short trades.
📉 Trading Plan - Short Setup
🔸 Entry: Look for a rejection from the $33.50 - $33.80 zone (previous wedge support, now resistance).
🔸 Stop Loss: Above $34.00 to protect against false breakouts.
🔸 Take Profit: $31.00 - $30.60 (previous demand area).
🔸 Risk-Reward Ratio: Favorable setup, ensuring proper risk management.
🛑 Risk Factors to Consider
⚠️ If Silver regains strength and breaks back above $34.00, it could invalidate the bearish breakdown and shift momentum back to the upside.
⚠️ Macroeconomic events such as inflation data, Fed speeches, or geopolitical factors could influence price action unpredictably.
