SILVER (XAG/USD) Analysis: Bullish Continuation from Retracement
📜 Summary
Despite some recent volatile price action, Silver is positioning for a potential bullish continuation. The current setup suggests that the price is undergoing a healthy retracement within a larger uptrend, presenting an attractive entry point for a long position, aiming for new highs.
📊 4-Hour Chart (H4) Analysis
The 4-hour chart provides a clear view of the recent price action and the proposed bullish setup.
📈 The Bullish Impulse: The chart clearly shows a strong upward impulse wave that began at the start of September, pushing the price from below $39.00 to a high near $41.50. This indicates strong buying interest in the market.
Fibonacci Retracement: A Fibonacci tool is expertly drawn on this most recent upward leg, identifying key support zones. The price has retraced into the 61.8% (40.7913) and 78.6% (40.6128) retracement levels. These are classic areas where smart money looks for entries to join the existing trend.
Potential Reversal Point: The price action around these Fibonacci levels suggests that this could be a temporary pullback, forming a solid base for the next leg higher. We are anticipating a bounce from this zone.
💡 Trading Scenario: Long Position
The chart illustrates a potential long (buy) trade based on the expectation of a bounce and continuation of the bullish trend.
🔮 Scenario: Bullish - The retracement to key Fibonacci levels is seen as an opportunity for the uptrend to resume.
▶️ Entry: Around $40.78. This entry point is strategically placed within the strong Fibonacci retracement zone, aiming to capture the bounce.
🛡️ Stop-Loss: Placed at $40.50. This stop-loss is positioned below the 78.6% Fibonacci level and a recent swing low, providing protection if the price dips further than expected.
💰 Take Profit: The target is set significantly higher at $41.70. This target aims for a break above the previous high ($41.50) and seeks to capture a substantial continuation of the bullish move. This level aligns with a -27.20% Fibonacci extension, which is a common target for the next impulse wave.
✅ Key Considerations for this Bullish Setup
Trend Following: This setup is based on the principle of trend following, looking for pullbacks in an established uptrend.
Fibonacci Confluence: The entry point is supported by the confluence of major Fibonacci retracement levels.
Risk/Reward: The setup aims for a favorable risk/reward ratio, targeting a move significantly higher than the stop-loss distance.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Trading involves risks. Always conduct your own research and manage your risk effectively before placing a trade.
Despite some recent volatile price action, Silver is positioning for a potential bullish continuation. The current setup suggests that the price is undergoing a healthy retracement within a larger uptrend, presenting an attractive entry point for a long position, aiming for new highs.
📊 4-Hour Chart (H4) Analysis
The 4-hour chart provides a clear view of the recent price action and the proposed bullish setup.
📈 The Bullish Impulse: The chart clearly shows a strong upward impulse wave that began at the start of September, pushing the price from below $39.00 to a high near $41.50. This indicates strong buying interest in the market.
Fibonacci Retracement: A Fibonacci tool is expertly drawn on this most recent upward leg, identifying key support zones. The price has retraced into the 61.8% (40.7913) and 78.6% (40.6128) retracement levels. These are classic areas where smart money looks for entries to join the existing trend.
Potential Reversal Point: The price action around these Fibonacci levels suggests that this could be a temporary pullback, forming a solid base for the next leg higher. We are anticipating a bounce from this zone.
💡 Trading Scenario: Long Position
The chart illustrates a potential long (buy) trade based on the expectation of a bounce and continuation of the bullish trend.
🔮 Scenario: Bullish - The retracement to key Fibonacci levels is seen as an opportunity for the uptrend to resume.
▶️ Entry: Around $40.78. This entry point is strategically placed within the strong Fibonacci retracement zone, aiming to capture the bounce.
🛡️ Stop-Loss: Placed at $40.50. This stop-loss is positioned below the 78.6% Fibonacci level and a recent swing low, providing protection if the price dips further than expected.
💰 Take Profit: The target is set significantly higher at $41.70. This target aims for a break above the previous high ($41.50) and seeks to capture a substantial continuation of the bullish move. This level aligns with a -27.20% Fibonacci extension, which is a common target for the next impulse wave.
✅ Key Considerations for this Bullish Setup
Trend Following: This setup is based on the principle of trend following, looking for pullbacks in an established uptrend.
Fibonacci Confluence: The entry point is supported by the confluence of major Fibonacci retracement levels.
Risk/Reward: The setup aims for a favorable risk/reward ratio, targeting a move significantly higher than the stop-loss distance.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Trading involves risks. Always conduct your own research and manage your risk effectively before placing a trade.
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ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน