- Silver has reached a level of supply following a strong bullish impulse.
- Bears are lurking and there are prospects of a meaningful correction.
XAG/USD has been in the hands of the bulls in a week that has seen the price skyrocket from out of consolidation.
The following is a top-down analysis that illustrates where the next opportunity may arise from a swing trading perspective.
Monthly chart
-637474747803022188.png)
The monthly price action has retested the neckline of the W-formation and the market can be expected to continue higher longer-term.
Weekly chart
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An upside continuation can be expected at this juncture on the weekly chart, but the daily chart offers a bearish prospect.
Daily chart
-637474746851221202.png)
There is an overextended W-formation on the daily chart which opens prospects of a correction to the prior resistance.
4-hour chart
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The bears can target the daily prior resistance once the conditions of the market are indicated bearish.
The target lines up with a 50% mean reversion of the daily impulse.
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