With the current situation going on in the world with trade wars among the highest economies and NATO and Russia kicking off some of the largest military exercises since the end of the Cold War, we can expect the price of metals to increase for the next few weeks as people would cash out their money from their banks and invest in a commodity because of the current uncertainty of the ongoing situation. breakingdefense.com/2018/09/nato-russia-prep-biggest-war-games-since-cold-war/
From the technical analysis side, XAG/USD is at its lowest since 2009. It hit this level 3 times since then. Once in 2015, next 2017 with its sudden crash and finally now.
It has been retaliating its bearish trend since half September and is currently trying to find support on top of the 50 EMA.
As it's in consolidation between the 50 EMA and 200 EMA on the 8H chart, we can expect a big move to happen eventually. Most probably to the upside. Give it some more time to confirm it's support on top of 50 EMA (A day or more) and you can invest.
The same situation is clear for any other metals. Wether it's XAU/USD or XCU/USD, it is the beginning of the reversal of it's multiple months of bearish trend. Although, for XAU/USD we would need to wait for it to pullback and find support for it to continue up higher.
*My point of view on what is going on and the interesting opportunity to arrise with the increase in price of commodities.
Make sure to do your own analysis before making any investment and never solely on the opinion of someone else.
Trade safe.
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No trades have been opened. XAG/USD was not able to hold on top of the 8H 50 EMA. The move is cancelled and on hold for the time being. As soon as we see some retaliation on top of 8H 50 EMA and support found, we can look for long again.
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With the current de-dolarization trend and dumping of dollar going on around the world from countries such as Russia, China, Venezuela, Japan, Iran and Turkey to in contrary increase their holdings in gold rather than the dollar, it is obvious that the price of Gold and other metals should increase as well this next few weeks and coming months.
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Price of gold, silver and other metals have increased as expected. At the moment, we can expect the bullish trend to continue for a while be it a few weeks. As we get new data on how price reacts, we'll be able to tell what's next to come.
Nice idea on XAGUSD. For our set up, we have identified the key resistance and support levels. Currently, price is approaching our first resistance at 15.20. It is a horizontal pullback resistance, 38.2% fibonacci retracement and a 100%, 61.8% Fibonacci extension. Stochastic is approaching resistance and we might see a corresponding drop in price. If a corresponding drop does occur, we may want to take a look at the 14.53 support level. It is a horizontal swing low support, 61.8%, 100% Fibonacci extension and a 50% Fibonacci retracement .
Please take a look at our idea and share with us what you think.
MoolahMaker
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@easyMarkets, I totally agree with you. A major support is finding itself at 14.5 which is right below the 50 EMA on the 8H chart. Indeed, if this support level holds, prices will make its first push up anywhere near 15.25 and 15.6 which is in between the 0.382 and 0.5 Fib retracement level. Thereafter, entering into a pullback or consolidation zone which will then confirm whether it has the momentum to push up even higher.
Great analysis from your part! Let's see how this plays out. So far, so good. I'll give it just a few more hours for the pair to confirm it's support and strength on top of 50 EMA on 8H chart and eventually make my investment of 3%.
easyMarkets
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@AwesomeMoMaker, morning! Why do you think that prices would break first resistance if the support level holds? :)
MoolahMaker
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@easyMarkets, Well, if the support held strong, then the sudden move up would've happened. Thereafter, as I explained, it could've gone to anywhere in between the consolidation zone. Once a sudden breakout happens, one cannot always exactly predict where it's going to pullback. And not always does it pullback at the first resistance line, depending on how much of a psychological importance it has. The reason why I gave a broader TP area as it could've gone higher than 1st resistance. Only while tracking the position when the breakout happens, one could tell more.. But definitely, yes, one can simply place their first TP at the first resistance line and as the market gives more data, they can increase their TP accordingly..
Regarding the bullish move up of XAG/USD, obviously at the time being it's unclear. We'd have to wait for it to break back on top of the 8H 50 EMA and thereafter we could tell what it's intending to do next. I believe it's going to take 1 to 2 weeks at least for it to find back support.
Please take a look at our idea and share with us what you think.