Greetings, dear traders. Welcome to our latest XAGUSD update! Let’s examine current market trends and potential scenarios for traders.
XAGUSD Market insights and trading signals by Guriforex:
On the 4-hour chart (H4), XAGUSD (Silver) has been on a short-term bullish impulse, forming an ascending channel pattern. This pattern is typically a sign of continued upward momentum, but we’re at a critical juncture as the price approaches the 61.8 Fibonacci retracement level.
🔍 Key Technical Insights:
- Ascending Channel Pattern: The formation of this channel indicates that Silver has been steadily climbing, respecting the trend’s upper and lower boundaries. However, as the price reaches the 61.8 Fibonacci level, traders are eyeing this as a potential resistance point.
- Money Flow Index (MFI) Divergence: Despite the recent rise, the Money Flow Index shows a divergence. This suggests that while the price is climbing, the amount of money flowing into the asset might not support the upward movement, which could signal weakening momentum.
📊 Crucial Levels to Watch:
- Bullish Breakout: If the bulls can push XAGUSD above the 29.700 resistance level, we could see the price target of 30.800, which will continue the bullish trend. This breakout would suggest that buyers are still in control and that further gains could be on the horizon.
- Bearish Correction: A breakdown of the ascending channel’s trend line could trigger a correction. The first target would be 29.100; if that level doesn’t hold, the price could slide further to 28.500. This would indicate a shift in momentum and potentially mark the beginning of a bearish phase.
❓ Your Trading Outlook:
- 🚀 Bullish: Are you confident XAGUSD (Silver) will break through the 29.700 resistance and continue its upward trend?
- 🔻 Bearish: Or do you see the MFI divergence and channel formation as signs that a correction is on the way?
💬 Share Your View: What’s your take on XAG/USD today? Let us know in the comments below if you’re leaning bullish or bearish! Your insights could help shape the conversation! 📉📈