XAG/USD 4H Chart: Channel Up

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Silver is an interesting case due to the fact that the metal recently reached a long term descending channel's lower trend line and rebounded. As a result an ascending channel pattern is forming. Moreover, the commodity price is affected by the Fibonacci retracement levels, which connect December 2015 low level with 2016 August high levels. Most recently the metal's price fell, as it approached the combined support level of the ascending channel pattern's lower trend line and the 38.20% Fibonacci retracement level near the 16.34 mark. For now Silver is set to continue the fall, as it is indicated by various clues. For example, the metal is overbought, as 74% of open SWFX positions are long. In addition, a fall is forecasted by the aggregate technical indicators.
© Dukascopy Bank SA
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