XAGUSD - wait for retracement before buying silver

XAGUSD is now in an ascending pitchfork after it escaped from the base of relatively flat cloud. One may want for a small retracement towards the Kijun before entering a long trade. Target is defined by a SSB level that is present in the weekly Ichimoku cloud back in August 2015. For a longer term trade, other targets given by weekly SSB are 16.93 and 17.8. In H4 Ichimoku, we are far away from the cloud, high above the Kijun in a nice bullish trend. There are no real obstacles for the lagging span besides the classical intermediate R/S levels. Around 15.80 it would enter the area of price that was present in November 2015.

I think it's worth going beyond technical aspects and think in terms of fundamentals, we have a global risk aversion that is pushing the market towards precious metals.

According to research by Smaugld, neither American nor Canadian mining production is sufficient to meet the demand for silver coins in each country.

Source: www.mineweb.com/news...g-industrial-demand/

Kommentera:

That was a hell of retracement....