XAGUSD Short-Term Analysis (4-hour chart) - 18/11/2024Disclaimer: This analysis is for educational purposes only and represents my personal opinion. Consult your financial advisor before making any decisions.
Market Analysis:
The XAGUSD pair has retested the key support level at 30.12 and bounced, but lacks impulsive momentum. The 4-hour price action indicates a bearish trend, confined within an ascending trend channel, with no notable increase in volume. A close below immediate support levels raises concerns about the short-term bullish outlook. However, RSI is showing both bullish divergence and bearish divergence.
Key Levels:
POC (Daily Point of Control): 31.29
Resistance (OBV): 31.29 - 32.00
Resistance: 31.29
Immediate Support: 30.18
Local Low: 29.67
Trading Bias:
Bearish: With the daily Point of Control at 31.29 and OBV resistance at 31.84-32.13, we anticipate a potential rejection upon retesting.
Scenario 1: Rejection at Resistance
Price rejection at 31.29 could lead to a decline towards 30.18 and potentially 29.67.
Scenario 2: Breakdown Below Local Low
A break below 29.67 could trigger a downward move towards 28.70 (daily Point of Control), filling the gap.
Caution :
A sustained move above 32.13 would invalidate our bearish bias and potentially signal a trend reversal.
