Silver Price Analysis: Bears about to take back control?

Silver is struggling to convince on the upside and could be in the throes of a healthy correction.
The weekly chart offers a compelling downside case from an overextended W-formation.

Ross J Burland FXStreet

The price of silver has been in the hands of the bulls for the past few months as it corrects the correction of the strong monthly rally.

The following is a top-down analysis that illustrates where the next swing trading opportunity could arise from resistance and targeting a key confluence level on the weekly and daily charts.

Monthly chart

The monthly chart shows a W-formation that, at some point, will require a correction that would be expected to reach at least a 38.2% Fibonacci retracement level.

There could still be a continuation, although the weekly chart is showing more overextended signs of market structure.

Weekly chart

The weekly chart is a showing an overextended W-formation which would be expected to lead to a downside correction towards the prior highs of the pattern that meets the 38.2% Fibonacci retracement level.

Daily chart

The price has seen a strong rejection from resistance and could lead to a significant downside correction.

4-hour chart

A restest of the current support and failure will raise a higher probability of a downside correction to the W-formation's structure and the confluence of a 50% mean reversion of the latest daily bullish impulse.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.