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XAGUSD, Candlestick Analysis

10/12/2022 11:27 AM


On the four-hour chart, at the level of 19.90, a Bearish Marubozu candlestick pattern is being built, signaling pronounced pressure from sellers, after which a Doji pattern has formed, indicating uncertainty in the market. In addition, at the level of 19.39, an absorption pattern is already visible, which warns that the "bearish" potential is still quite high. In this situation, a further decline in the asset to the support level of 18.34 is more likely, overcoming which will strengthen the negative dynamics in the area of 16.87–15.42. An alternative scenario is possible if the "bulls" manage to seize the initiative and consolidate above the resistance level of 19.90, and then the quotes may recover higher in the range of 20.79–22.50.


On the daily chart, at the level of 20.79, there is the formation of a reversal candlestick analysis pattern Hanging Man and a Doji pattern. At the moment, two "bearish" Marubozu patterns have appeared on the chart of the XAG/USD pair, which warn that the downtrend has not yet ended. In this situation, the continuation of the downtrend to the key support level of 18.34 is most likely, the overcoming of which will allow the instrument to go lower to the area of 16.87−15.42.

Support levels: 18.34, 16.87, 15.42. | Resistance levels: 19.90, 20.79, 22.50.

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