Ichimoku Watch: Silver Testing Kumo Cloud Support
The price of silver versus the US dollar (XAG/USD) offers an interesting technical picture.
Friday finished as a bearish outside day reversal from the upper boundary of a descending channel (from $32.30). However, this sent the precious metal back under both the Conversion Line (blue at $29.76) and the Base Line (red at $30.60), which some could view as a bearish signal.
However, there are a number of warning signs that could discourage further selling:
• The Ichimoku Cloud support (made up of the Leading Span A at $30.19 and the Leading Span B at $29.27) is currently being tested.
• Silver has been trending higher since earlier this year after breaking out of a year-long range between approximately $22.12 and $25.85.
• Trendline support (from $22.27) is visible nearby.
Price Direction?
With the trend still favouring bulls, the Ichimoku Cloud support between $29.27 and $30.19, and the neighbouring trendline support, follow-through selling is likely to be thin following Friday’s bearish outside reversal candle.
A close above the descending channel line would also likely attract bullish interest to target the May tops around $32.27.
Friday finished as a bearish outside day reversal from the upper boundary of a descending channel (from $32.30). However, this sent the precious metal back under both the Conversion Line (blue at $29.76) and the Base Line (red at $30.60), which some could view as a bearish signal.
However, there are a number of warning signs that could discourage further selling:
• The Ichimoku Cloud support (made up of the Leading Span A at $30.19 and the Leading Span B at $29.27) is currently being tested.
• Silver has been trending higher since earlier this year after breaking out of a year-long range between approximately $22.12 and $25.85.
• Trendline support (from $22.27) is visible nearby.
Price Direction?
With the trend still favouring bulls, the Ichimoku Cloud support between $29.27 and $30.19, and the neighbouring trendline support, follow-through selling is likely to be thin following Friday’s bearish outside reversal candle.
A close above the descending channel line would also likely attract bullish interest to target the May tops around $32.27.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.