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Silver Breaks Major Resistances

By:
Tomasz Wiśniewski
Updated: Feb 18, 2019, 12:48 UTC

I am a huge fan of Gold and I look at this instrument almost every day. Silver stays in the shadow but that does not mean that I ignore this asset.

Macro close up of a pure Silver Bullion coin

Previously, I analyzed the Ag on Friday, as the technical situation back the was very interesting. My price action approach was telling me, that we are very close to a major buy signal. The new week started very well, so our view from Friday was spot on. Check out yourself:

“The situation looked dramatic but buyers managed to create a reversal, which is drawing a right shoulder of the Inverse Head and Shoulders pattern. The price closing a day above the yellow area, will be a strong buy signal. “

The yellow resistance mentioned above was broken on Friday as the price managed to close the week almost 10c above that area. The yellow horizontal line was not the only resistance that got broken at the end of the week. Actually, there were many of them! First, let me mention the two red lines, which were the borders of the symmetric triangle pattern. What is more, Silver broke the black mid-term down trendline and came back above the long-term blue up trendline. Quite a lot for one day, huh?

XAGUSD_iH1
XAGUSD H1 Chart

With all this, the sentiment has to be positive. Buyers managed to break all major resistances, using only the small inverse head and shoulders pattern (gray area). The buy signal remains ON, as long as the price is above the yellow area. The aim for the new up wave is the top from the 31st of January. Chances that we will get there are pretty high.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.

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