I’m seeing a trend line breakout on silver’s short-term chart!
Can the precious metal still go for a pullback before the reversal gains traction?
Here are the correction levels I’m watching:
Silver (XAG/USD): 1-hour
Missed this strong bullish breakout on the hourly chart of XAG/USD?
Silver might still need to retreat to nearby support levels to gather more bullish energy, so don’t miss a pullback if it happens!
Stochastic is starting to make its way south after spending some time in the overbought region, which means that bears are taking control while bulls are feeling exhausted.
The oscillator has plenty of room to move down before indicating oversold conditions, so the correction could keep going in the meantime.
I’ve got my eye on the 38.2% Fib retracement level, which happens to line up with a former resistance zone that could now hold as a floor.
A larger correction could reach the 61.8% Fib that’s also in line with an area of interest, the broken descending trend line, and the 200 SMA dynamic inflection point.
The 100 SMA is below the 200 SMA to reflect downside pressure for now, but it looks like the moving averages are gearing up for a bullish crossover.
If you’re hoping for better odds, you could wait for technical signals to line up or for reversal candlesticks to form at support levels before going long.
Also, don’t forget that the U.S. economy has a bunch of top-tier catalysts lined up that could significantly impact overall market sentiment and commodity price action. In particular, the U.S. CPI and retail sales figures might trigger strong risk-related moves, so keep an eye out for those!
