XAG/USD: Bulls may send the market to 27.927
In the long term, Silver is most likely moving inside a corrective trend consisting of cycle waves w-x-y-x-z.
On the 1H timeframe, we see the structure of the second intervening wave x, which may soon be completed, taking the form of a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ
By the middle of last month, the bears have finished primary intervening wave Ⓧ, it has the shape of zigzag (A)-(B)-(C).
At the moment, the price may be in the primary wave Ⓩ. Perhaps this wave will be a standard zigzag, where the impulse and correction have already been completed. In the near future, growth is expected in (C) to 27.927.
Alternatively, it is assumed that the intermediate correction (B) has not yet been completed. There is a possibility that it will take the form of a minor zigzag A-B-C.
Only the first impulse wave A looks completed, a slight rise in the second part of correction B is possible in the near future, after which a decrease is expected in the final impulse C.
It is assumed that the intermediate correction (B) will be at 38.2% of impulse (A), and will end near 23.740.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
