Silver makes new lows

Last few months are catastrophic for the precious metals. Gold and Silver are falling down almost without any stops. Today, we will analyse instrument, which in the last two months is behaving slightly worse in this pair – Silver.

On the XAGUSD we do have a fresh sell signal. We all know, that precious metals are in a deep down trend but bears are not slowing down and the price is declining almost every day. The most recent sell signal comes from the breakout from the symmetric triangle pattern, which was forming on the chart since the middle of July (brown lines). Breakout happened today, overnight and is a direct trigger to go short. After the price broke the lower line of this pattern, XAGUSD went slightly higher to test this line as a closest resistance – a typical price action movement. After the test, the price went down crashing any bullish dream in the mid-term. Current sentiment is negative and we do not see any chances for a reversal.

The only lows that are left now are those from the July 2017 and Price Action rules are suggesting us that we should get there relatively easy. Sell signal will be cancelled, when the price will come back above the upper line of the triangle, which for now, is less likely to happen.