XAG/USD, D1

On the daily chart, the instrument tries to rise from 22.26 (correction 61.8%, rising fan line 61.8%), which it tried unsuccessfully to break last month. Now the price is close to 23.00 (correction 50.0%, ascending fan line 50.0%), the breakdown of which will allow the upward movement to reach the area of 23.70 (correction 38.2%, the middle line of Bollinger Bands) and 24.58 (correction 23.6 %). If it consolidates below 22.26, a correction to 19.95 is likely (correction 100.0%).

Technical indicators do not give a single signal: Bollinger bands are directed downwards, and the MACD histogram is increasing in the negative zone, confirming the preservation of the current trend but Stochastic has rushed up, not excluding the strengthening of the upward dynamics.

XAG/USD, W1

On the weekly chart, the price failed to break through the oncoming downward fan and resumed its decline, approaching 21.95 (correction 38.2%), the breakdown of which will be the catalyst for moving towards 20.50 (correction 23.6%). If 23.18 (correction 50.0%) is broken upwards, growth will resume to 24.38 (correction 61.8%).

Technical indicators do not give a single signal: Bollinger bands reverse horizontally, Stochastic is pointing downwards, and the MACD histogram is preparing to go into the negative zone and form a sell signal.

Support and resistance

If the support zone 22.26–21.95 (correction 61.8%, D1 and correction 38.2%, W1) is broken down, the targets for the decline will be 20.50 (correction 23.6%, W1) and 19.95 (correction 100.0%, D1). Continuation of corrective growth to the area of 23.70 (correction 38.2%, the middle line of Bollinger bands, D1) is also not excluded but it is unlikely to lead to a change in the current trend.

Resistance levels: 23.00, 23.70.

Support levels: 21.95, 20.50, 19.95.

Trading tips

Short positions should be opened below 21.95 or when the price reverses at 23.70 with the targets at 20.50, 19.95, and stop losses at 22.70 and 24.30, respectively. Implementation period: 5–7 days.