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Uptrend XAGUSD recoils from psychological resistance

Watch 2013-low for resistance

This is a previous psychological-low and until overtaken, XAGUSD belongs to a year-year downtrend.

XAGUSD now resisted by previous 2013-low

Year to year, XAGUSD still down trend until it can go higher

Price action last night confirms that the level is now resistance since price recoiled from level.

xagusd-price-action-2013-low

XAGUSD recoils from 2013-low confirming it as resistance

On the other hand, month-month and week-week trends are up for XAGUSD. Price reaction to level comes from profit taking and until a reversal pattern emerges, there is no reason to turn bearish.

 

Simple conclusions to draw from charts

  1. Week-week trend UP
  2. Month-month trend UP
  3. Year-year trend DOWN which this level (2013-low) has to be overcome to change this leg

 

A simple exercise that readers can do using MT4:

  1. Visit both XAUUSD and XAGUSD on ‘W1’ or ‘MN’ higher time frame.
  2. Inspect year-year action.
  3. Discover that both precious metals started making new-year-low in 2013 compared to previous year.
  4. Use 2013-low as hurdle for both metals and compare that hurdle to where price is trading for both right now.
  5. Realise that XAGUSD is still below and has to fight 2013-low which XAUUSD has already overcome.
  6. Conclude that XAUUSD is technically stronger than XAGUSD.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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One thought on “Uptrend XAGUSD recoils from psychological resistance”

  1. Jui Koon Derrick Tan says:

    Thanks for the concise and clear analysis.

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