XAG/USD – Quiet before the storm?
XAG/USD has been quietly propping up over the last month. There hasn’t been a major move as yet simply because a lot of the bad news is just priced into the markets. The next bad thing that would really shake the markets would be “The collapse of the dollar.”
At any rate, looking over the technicals suggest that the support level is in place. On the 4-hour price chart 26.12, 30.16, and 32.16 are all support marks and are all holding up well. Currently XAG/USD is in a sideways market and there is no trade opportunity in place.
Zooming into the weekly chart, we see that a long-term short trend is in place. Currently we are in the middle of a downtrend channel. The trend started back in April 2011 when a strong bearish week ended the rising uptrend.
What to look for?
Entering long or short right now is not advisable. The best approach to take right now is to wait for the price point to touch either of the support or the resistance downtrend line.