XAG/USD, H4

On the four-hour chart, after a long consolidation in the range of 23.56–24.45, the price has overcome the lower border of the channel and is holding around the 23.01 mark, heading towards the support level of 22.78. The formation of a series of Shooting Star candlestick patterns above the 23.56 level reflects pressure from sellers, and the formation of a Three Black Crows pattern signals a continuation of the downward movement. In the current situation, it seems more likely that the quotes will further decline to the key support level of 22.78, after which short positions with the targets around 22.11–21.23 are relevant. If the trading instrument consolidates above 23.56, upward dynamics may develop into the area of 24.45–25.27.

XAG/USD, D1

On the daily chart, there is a formation of a large Head and Shoulders pattern, which signals a change in the direction of dynamics, which is confirmed by the formation of reversal “bearish” candles Hanging Man and Shooting Star above 23.56. Consolidation of the price below the Neckline and the key level of 22.78 will allow it to reach the area of 22.11–21.23.

Support and resistance

Resistance levels: 23.56, 24.45, 25.27.

Support levels: 22.78, 22.11, 21.23.

Trading tips

Short positions may be opened below 22.78 with the targets of 22.11 and 21.23. Stop loss – 23.17. Implementation time: 9–12 days.

Long positions may be opened above 23.56 with the targets of 24.45 and 25.27. Stop loss – 23.17.