Silver, XAG/USD Shaping up for Bearish Reversal Down the Road?
Silver continues to push higher after bottoming in late March, around the time US longer-term Treasury yields topped and transitioned into a consolidative state.
On the 4-hour chart, XAG/USD is rising within an Ascending Broadening Wedge. A breakout to the downside could open the door to a resumption of the prior downtrend.
The fundamental catalyst may be a push higher in US government bond yields, particularly after it was revealed from the FOMC minutes that it may be soon appropriate to talk about tapering.
Still, until then, the precious metal may continue its steady ascent in the near term. Keep a close eye on the 78.6% Fibonacci retracement for key resistance. The floor of the wedge is also shaping up to be very closely aligned with the 100-period Simple Moving Average.
On the 4-hour chart, XAG/USD is rising within an Ascending Broadening Wedge. A breakout to the downside could open the door to a resumption of the prior downtrend.
The fundamental catalyst may be a push higher in US government bond yields, particularly after it was revealed from the FOMC minutes that it may be soon appropriate to talk about tapering.
Still, until then, the precious metal may continue its steady ascent in the near term. Keep a close eye on the 78.6% Fibonacci retracement for key resistance. The floor of the wedge is also shaping up to be very closely aligned with the 100-period Simple Moving Average.
Kommentera:
Silver seems to have broken under an Ascending Broadening Wedge, opening the door to reversing the near-term uptrend. Follow-through may see prices may towards lows from May
