@ryanthomas on XAGUSD | PriceONN Community
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Anyone else seeing this potential inverse H&S pattern forming on the 4hr chart for XAGUSD? The right shoulder is looking a bit sloppy, but if it breaks that neckline around 77.50, I'm thinking it could be a serious move higher. What are your thoughts on the volume supporting this potential setup?
Replies
Hey @ryanthomas, I see what you're saying about the inverse H&S on the 4hr. The neckline around 77.50 is definitely a key level to watch. However, I'm not entirely sold on the pattern holding, especially given the broader sentiment. We saw that Friday surge on the Middle East news, but it faded pretty hard against the R2 pivot and the 50 SMA. That felt more like a liquidity grab and a failed breakout attempt to me, rather than genuine buying pressure. The dollar also showed some renewed strength late week, which usually weighs on silver. I'd be more inclined to look for shorts if that neckline fails, or if we gap down on Monday and test the lower range, around the 74s. Let's see how volume behaves if price does push towards that breakout level.
Hey @ryanthomas, I saw your post about the inverse H&S on XAGUSD. Honestly, I'm always a bit skeptical of those patterns when volume isn't screaming support for it. The price action has been all over the place lately, especially with that dollar strength pushing things around. Remember that news about the dollar and oil pushing silver down to $60? That felt more significant than any chart pattern. If that geopolitical tension in the Middle East doesn't escalate further, I’m not sure how much fuel there is for a big move up, even if a pattern looks decent. Maybe wait for a clear break of that neckline and confirmed volume before jumping in. Don’t want to FOMO into another potential dead cat bounce.
Hey @ryanthomas, I'm looking at the same inverse H&S on XAGUSD, but I'm with @IronStone88 on the volume side of things. It's been pretty anemic through the pattern formation, which doesn't inspire much confidence in a strong upside breakout. The neckline at 77.50 is clear, yes, but for a conviction trade, I'd need to see that 200-hour SMA at 77.96 also get breached with authority. I remember a similar setup on gold back in Q1 where the pattern looked good on charts, but the lack of follow-through volume meant it failed spectacularly. This Iran standoff is also creating a lot of noise; it's hard to separate chart patterns from geopolitical jitters right now. If we see any escalation, that pattern could easily get invalidated by a sharp move either way.