A downward correction may continue.

On the 4-hour chart, the key resistance level is still at 16.00. This month, the price has tested this level several times, but has not managed to break it out. At present, after one more failed attempt, another downward correction has started with the target levels of 15.65 (23.6% correction) and 15.39 (38.2% correction).

A more interesting picture is on the daily chart, where the price has stopped at the level of 15.93 (50.0% correction) near the crossover with the 50.0% arc. In the short term, the price is likely to decline along the 50.0% arc to the levels of 15.50 (38.2% correction) and 15.30. If the level of 15.93 is broken out, the price may continue growing to 16.36 (61.8% correction) and 16.80.

Trading tips

Short positions are preferable and can be opened from the level of 15.80 with targets at 15.65, 15.39 and stop-loss at 16.00.

Alternative scenario

Long positions would become valid after the price turns up and consolidates above the level of 16.00 with targets at 16.36, 16.80 and stop-loss at 15.90.

XAG/USD: Fibonacci analysis

XAG/USD: Fibonacci analysis

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