Silver May Be Offering a Trading Opportunity With Its Cross Below Its 20 Moving Average

The Hourly View for Silver

  • Currently, XAGUSD’s price is up $0.01 (0.05%) from the hour prior.
  • This is a reversal of the price action on the previous hour, in which price moved down.
  • Regarding the trend, note that the strongest trend exists on the 50 hour timeframe.
  • Price action traders may also wish to note that we see a pin bar candlestick pattern on Silver. Given that we see an uptrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. With that said, traders should also note the downtrend on the 20 hourly candle timeframe, so the meaning of the candles may require further exploration.
  • The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Silver’s hourly price chart is shown below.

XAGUSD

The Daily View for Silver

  • At the moment, XAGUSD’s price is up $0.28 (1.18%) from the day prior.
  • This move is a reversal from the day prior, which saw price move down.
  • As for the trend on the daily timeframe, we see the clearest trend on the 100 day timeframe.
  • Most noteworthy in the world of moving averages on the daily chart is that the 20 day moving average has been crossed, so that price is now turning above it. The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
  • Divergence between XAGUSD’s price and its RSI may be manifesting. As such, be on the lookout for trend reversal in XAGUSD’s price.

Below is a daily price chart of Silver.

XAGUSD

Featured Silver Idea From TradingView

Below is a trading comment entitled XAGUSD Swing trading 04112021 you may find interesting:

Silver trading sideways since Jan 2021. Recent macro-environment, demand-driven expansions, positively influence XAG however talks of earlier interest rate hikes in Q2 2022 diverted market to dollar assets putting pressure on the USD side.Fundamental Factors: Industry demand for silver is still up since March 2020 however recent slowdown in new housing builds and earlier than expected interest rate hikes deterring infrastructure investments may impact industrial use of silver. Moderate economic shocks seen from volatile commodity prices (silver supply inputs), supply chain disruptions, and China’s bond market contribute to continuing risk-off sentiment continues to benefit risk aversion assets such as crypto, silver, and gold.Supply on the other hand has been declining across 12 out of the largest 20 silver mining countries and the largest silver miners from Mexico and Peru have confirmed reducing mining forecast in FY22. Supply …

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