XAG/USD 1H Chart: Decline still in sight
Silver had been moving sideways against the US Dollar since mid-July with a diminishing trading range. As a result, symmetrical triangle was formed within a more senior pattern—a descending channel valid since the beginning of June.
This triangle was breached today. Such bearish breakouts are usually followed by a retracement from the breached pattern and a subsequent fall. Technical indicators demonstrate that there is still some downside potential in the market before bulls are able to prevail in the market once again.
The nearest support is the monthly S1 at 15.08; however, this decline is expected to be more significant, thus setting the 14.95 mark as a possible near-term target. Meanwhile, Silver bulls should look for buy signals, as such falls are followed by price surges.
This triangle was breached today. Such bearish breakouts are usually followed by a retracement from the breached pattern and a subsequent fall. Technical indicators demonstrate that there is still some downside potential in the market before bulls are able to prevail in the market once again.
The nearest support is the monthly S1 at 15.08; however, this decline is expected to be more significant, thus setting the 14.95 mark as a possible near-term target. Meanwhile, Silver bulls should look for buy signals, as such falls are followed by price surges.