XAG/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen line, they are both horizontal, indicating sideways trend. Chinkou Span line is approaching the price chart from below, current cloud is descending. After an abrupt fall the price is consolidating at the level of Tenkan-sen and Kijun-sen lines, the closest resistance level is the lower border of the cloud (22.08). One of the previous extremums of Chinkou Span line is expected to be a support level at 21.28.
XAG/USD, D1
On the daily chart Tenkan-sen line is above Kijun-sen line, and they are both horizontal. However, the price has broken through the cloud and is consolidating below the resistance level of Kijun-sen line (21.78). Chinkou Span line is following the price chart, current Kumo is descending. One of the previous extremums of Chinkou Span line is expected to be a support level at 21.20.
Key levels
Support levels: 21.78, 22.08.
Resistance levels: 21.28, 21.20.
Trading tips
On the four-hour chart the signal to open long trades may be the cross of the price chart and Chinkou Span line. But daily chart doesn’t confirm the trend reversal. In middle-term scenario it is recommended to open short trades with targets at 21.28 and 21.20.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies