SILVER (Ag)

 WEEKLY PRICE ACTION ANALYSIS

In one of previous articles, we discussed why the crypto boom is likely to bring back investors to the centuries safe havens i;e Silver and Gold. We also talked about why silver is likely to be a better investment than Gold. If you missed the article, you can get it here

So now lets look more into the price action on the silver weekly chart.

WEEKLY CHART

Price on the weekly chart is into congestion triangle showed by red trendlines A and B. The large monthly chart is into a large support which explains the large congestions on the weekly chart.

Silver price is coming towards end of triangle without breakout, so may see immediate levels of support X around 15.600 and resistance Y around 19.000 , hold before momentum can build to hit the ultimate levels S and R respectively.

For now keep the trading within the triangle congestion.

Weekly candle close above A may lead price into Immediate resistance Y and depending on the reaction on the Y zone we may see price push to large resistance marked  R around the 20.000 zone.

Weekly candle close below B may lead price into immediate support X and depending on the X zone reaction, price could retest lows at 14.600 zone  marked S

The large monthly chart already shows some bullish bias, so preferably price has to stay above support trendline B to maintain the bullish bias. If the upward bias is maintained and we get prices hitting resistance R, a monthly candle close above the zone R may give a long term monthly swing on the upside.

We still in congestion now, so we will wait for price action on the major marked support and resistance levels.

GOLD, PRICE ACTION ANALYSIS

WEEKLY CHART

The price is back into congestion zone after a false break out at close of weekly candle(blue marking) on 1st Sept. Currently what we see is price into support zone but no major reaction for bounce up. Price is into the 21 Simple moving Average (SMA) zone, great horizontal support around 1266 zone marked with a blue line

The momentum on the downside is still quite strong, so it can make some lower lows aiming for the previous red trendline support marked T

If in short trade, you could take out some of your profits as we wait for reaction in this large support zone (21 SMA, horizontal and trendline support).

SO WHATS NEXT?

Depending on the price reaction on the current support zone, there are two major zones that could determine larger movement up or down. These levels are support trendline T and horizontal resistance zone marked with red line R.

Close below T could lead price to retest previous lows of the congestion around 1212.885 support zone marked S. Preferably if there is a small congestion on the current support zone to give momentum for price to fall through to S. But if current price just falls through beyond T with no pause, it will have a hard time falling into S, we may see immediate support zones in this case hold.

Close above resistance R ,could give  a true breakout that could push prices up. Previous highs would of course be the immediate resistance zone around 1345 marked Z