XAGUSD Correction B Pulls Silver Lower

(Click on image to enlarge)

A closer look at the 1H timeframe shows a large corrective wave b which is part of the global zigzag. Correction b most likely takes the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The final primary wave Ⓩ looks to be a double zigzag of the intermediate degree (W)-(X)-(Y). After the end of the actionary wave (W), prices moved higher in the intervening wave (X). Like wave (W), intervening wave (X) can end in the form of a minor double zigzag W-X-Y.

The end of the bullish trend is likely near 22.420. At that level, wave (X) will be 61.8% of wave (W).

(Click on image to enlarge)

An alternative scenario assumes that the XAGUSD pair has completed an ascending intervening wave (X) of the intermediate degree. As in the main version, it has the form of a double zigzag W-X-Y.

Thus, in the next coming trading days, we can expect a drop in the value of XAGUSD and the formation of a bearish actionary wave (Y). Perhaps this wave will have a standard zigzag shape A-B-C, as shown in the chart.

The first target for bears is at the previous minimum of 17.538. This was marked by the actionary intermediate wave (W).


More By This Author:

Australia October Unemployment And Stronger Aussie
Intraday Market Analysis – USD Tries To Bottom Out
European Final CPIs And Yield Gap

Disclaimer: Orbex LIMITED is a fully licensed and Regulated Cyprus Investment Firm (CIF) governed and supervised by the Cyprus Securities and Exchange Commission (CySEC) (License Number 124/10). ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.