- February 27, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
Since early last year, we have been following a certain buy low/ sell high approach on Silver (XAGUSD) after we identified that it has been trading inside a 2-year Channel Down:
We most recently turned bearish again on precisely the right time on our previous January 31 sell call:
Right now however, with the price having broken on Friday below the 1D MA200 (orange trend-line) for the first time since November 30, it hit the 20.625 Support formed by the November 21 Low. This is potentially the formation of the Right Shoulder of a giant Head and Shoulders (H&S) pattern. With the 1D RSI deep below the oversold barrier, this is were we will attempt our first medium term buy targeting the (green) Symmetrical Resistance Zone and the 1D MA50 (blue trend-line), any of the two gets hit first.
We will attempt an additional buy entry near the Higher Lows trend-line (holding since the September 01 Low), as this would complete a -19.50% decline, similar to the June 06 – July 14 pattern. Its target was a +15.10% rise to the 0.618 Fibonacci, but again we will settle for just the (green) Symmetrical Resistance Zone and the 1D MA50 as targets.