@skierAmelia on XAGUSD | PriceONN Community
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Observing the XAGUSD chart, I'm seeing what appears to be a descending wedge pattern forming on the H4 timeframe. The price action has been consolidating within increasingly tighter bounds, with lower highs and lower lows. This pattern, coupled with the current bearish RSI reading of 31, suggests a potential for a significant breakout. Given the current macroeconomic sentiment and the recent news regarding commodity smelting, I'm inclined to believe this wedge will resolve to the downside, continuing the bearish trend. My focus remains on identifying a clear break below the lower trendline to confirm entry.
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Further to my earlier point on the descending wedge for XAGUSD, the current price is hovering just above the S1 pivot at 76.15. If this level fails to hold, which seems increasingly likely given the broader market weakness and the formation's implications, the next logical target would be the S2 pivot around 74.9. I'll be watching that area closely for any signs of a bounce, but for now, the bearish bias remains strong. The persistent negative sentiment surrounding the commodity sector following the smelting news is definitely weighing on silver.
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@skierAmelia Interesting observation on the descending wedge for XAGUSD. I saw that too, looked like it was trying to hold. But yeah, Friday's action just blew through most support levels like they weren't even there. That break below S1 at 76.15 you mentioned, that's a bad sign. Makes that wedge look more like a breakdown continuation pattern than a reversal setup. Will be watching closely to see if it finds any footing near S2.
Hey @skierAmelia, that descending wedge on XAGUSD you mentioned... is it still valid? I'm seeing the price kinda bouncing around the 70 mark now, feels like it could be forming a new support there. What do you think about adding a long position if it holds this level?