XAGUSD
XAGUSD Commodity
Today, we have a promising setup on XAGUSD (Silver). My analysis on the 4-hour chart is based on a straightforward supply and demand concept. The price has returned to a demand area after reaching a supply area. We have observed the break of a trendline and a daily structural break, indicating that the price may return to the supply area.
I also like the divergence seen with the diminishing selling momentum toward the demand zone. Additionally, the bullish impulse that broke the previous daily high is noteworthy, and the price has also broken through the descending trendline. Now, let’s take a closer look at this setup by examining the 1-hour chart.
A Closer Look at the 1-Hour Chart
On the 1-hour chart, we can clearly see the break of the previous daily high structure, and the bullish impulse was quite aggressive, which I find favourable.Â
As of now, the bullish impulse has completed, and a correction is forming. I will monitor this correction and hope it rejects at the 0.5 or 0.618 Fibonacci level. If that happens, I plan to enter a trade if we see bullish momentum that breaks the trendline of the correction.