Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

XAG/USD - classic double top confirmation

Silver (XAG/USD) priced in the US Dollar has been bullish in 2016 until it found resistance at and under 21. The daily chart shows that price stalled around 21 and eventually formed a double top.

XAG/USD Daily Chart 9/10

(click to enlarge)

Double top and confirmation:
- After price fell below 19.20, the double top was completed.
- Then silver fell just below 18.50 before rallying. 
- Now, the central pivot of the double top was around 20. Also, 20 is a psychological level. 
- 20 was therefore a key pivot and key resistance. A rally above 20 could invalidate the double top and open up a bullish continuation scenario.
- The fact that silver retreated from 20 shows respect to the double top.
Bearish targets:
- This is a classic double top confirmation putting downside pressure towards 18.00. Still we should anticipate some near-term buying around the August support: the 18.40-50 area .
- There is also downside risk towards the pivot in the 17-17.10 area, which is reinforced by a rising trendline and possibly the 200-day simple moving average (SMA).