๐ Daily TA: Silver (XAG/USD) | 04-10-2020
Hello, dear members of LeoFinance!
Today I won't comment on a price chart of a cryptocurrency, but will comment on the price chart of Silver (XAG/USD). A commodity that I used to trade very actively in 2010 and 2011.
In the monthly time frame (MN), XAG/USD has formed a Bearish Engulfing in September: According to Technical Analysis theory, a Bearish Engulfing is a trend reversal candlestick formation, indicating the the uptrend is over and that lower prices will come.
However, I would like to mention that, as seen in the price chart above, the Bearish Engulfing formed at a level that use to be very important back in 2011-2013. At that time this level used to be a support level. But, in April 2013 the price of Silver dropped significantly and XAG/USD lost that support level.
Now, I consider this level as a key resistance level. That's why it seems that the Silver bulls are facing solid resistance from the bears at this level, and it won't be easy for the uptrend to continue. And, probably, this is the reason behind the recent Bearish Engulfing. Nevertheless, I still don't view the current Bearish Engulfing as a reliable trend reversal candlestick formation. It may just turn out that this is the beginning of some consolidation near the resistance level.
To be continue ...
So, fellow LeoFinancier, what do you expect from the price of Silver in the near future?
p.s. at the time of writing one ounce of Silver costs $23,69 according to TradingView
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 14+ years, and as a cryptocurrency analyst for the last 3+ years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency trades, investments and etc.
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