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XAGUSD triangle, long support base nearly 2 years duration

2 charts of XAGUSD, monthly and weekly charts showing a 2-year support base and XAGUSD poised for a potential upwards breakout and best performance since 10 weeks. For long term investors, end-of-week close and end-of-month performance should provide clear input.

 

Looking for bullish signal to long side

Features:

  1. Monthly chart at top shows support base of 2 years duration from May 2016 to present.
  2. I am taking the long spike below in July 2017 as an outlier or fluke.
  3. XAGUSD is resisted by two trend lines, one connecting extreme highs, the second connecting end-of-month close.
  4. Highest traded price in 2018 set in January at 17.68.
  5. In these charts captured today, last traded price of XAGUSD at 16.90.
  6. Best end-of-week close in the last 10 weeks was 16.65. We want to see how this pair closes end of this week.
  7. If XAGUSD retains this current traded price on Friday, it should be considered a bullish signal. If it closes below 16.65 again, consider that this 10-week resistance could be very strong, that there might be a lower move.
  8. Making a new 52-week high would be a very positive signal, as well as an end-of-month close/breakout above both trend lines.
XAGUSD monthly (top) and weekly chart with 2-year triangle

XAGUSD monthly (top) and weekly chart with 2-year triangle | Source: Tradingview.com

 

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

“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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