Silver Bearish Gartley Pattern: Short Setup at Key Resistance
The Silver (XAG/USD) chart has completed a Bearish Gartley pattern, with point D recently hit around 31.15. This suggests a potential bearish reversal in the near term. Price is approaching a critical resistance zone, indicating a likely correction. With the TDIGM oscillator nearing overbought territory, the odds of a pullback are high.
1.Short Sell at Point D (Bearish Gartley Pattern)
The completion of the Bearish Gartley at point D around 31.15 increases the likelihood of a reversal. This area is aligned with key Fibonacci resistance, and the overbought TDIGM oscillator supports the case for a correction.
Entry: Short between 31.10 and 31.30, after a confirmation of price weakness.
Target 1: 30.17 (previous B-level support).
Target 2: 27.72 (next support and 61.8% Fibonacci retracement).
Target 3: 26.21 (deeper support level. From a longer-term perspective, Silver is in an uptrend, but a break below the 29.72 support could signal a deeper correction).
Stop Loss: 32.20 (above point D to protect against false breakouts).
The confluence of the Gartley pattern, overbought conditions, and technical resistance provides a strong case for this short setup.
2.Buy on Retracement (Minor Correction Scenario)
If the market experiences a mild correction after hitting point D, a potential support zone around 29.90 could provide a buying opportunity for a medium-term rally. This level has acted as previous resistance and may now serve as support.
Entry: Buy between 29.70 and 29.80, provided the price shows signs of holding support (e.g., Pinbar or Hammer candlestick).
Target 1: 31.15 (retest of the resistance at point X, D).
Stop Loss: 27.50 (below the support level to limit risk).
The success of this strategy depends on the depth of the correction. A shallow retracement improves the odds, but there's still a moderate risk of a deeper pullback.
FINAL THOUGHTS
The completed Bearish Gartley pattern at point D offers an excellent short-selling opportunity in the near term, with high probability and an attractive risk-reward ratio. The buy-on-retracement strategy has a lower probability but remains viable if the market correction is shallow. A long-term short could also provide solid gains if the key support at 29.73 is broken.
Keep an eye on support and resistance zones and monitor closely price action and confirmation signals on lower timeframes before taking action!
1.Short Sell at Point D (Bearish Gartley Pattern)
The completion of the Bearish Gartley at point D around 31.15 increases the likelihood of a reversal. This area is aligned with key Fibonacci resistance, and the overbought TDIGM oscillator supports the case for a correction.
Entry: Short between 31.10 and 31.30, after a confirmation of price weakness.
Target 1: 30.17 (previous B-level support).
Target 2: 27.72 (next support and 61.8% Fibonacci retracement).
Target 3: 26.21 (deeper support level. From a longer-term perspective, Silver is in an uptrend, but a break below the 29.72 support could signal a deeper correction).
Stop Loss: 32.20 (above point D to protect against false breakouts).
The confluence of the Gartley pattern, overbought conditions, and technical resistance provides a strong case for this short setup.
2.Buy on Retracement (Minor Correction Scenario)
If the market experiences a mild correction after hitting point D, a potential support zone around 29.90 could provide a buying opportunity for a medium-term rally. This level has acted as previous resistance and may now serve as support.
Entry: Buy between 29.70 and 29.80, provided the price shows signs of holding support (e.g., Pinbar or Hammer candlestick).
Target 1: 31.15 (retest of the resistance at point X, D).
Stop Loss: 27.50 (below the support level to limit risk).
The success of this strategy depends on the depth of the correction. A shallow retracement improves the odds, but there's still a moderate risk of a deeper pullback.
FINAL THOUGHTS
The completed Bearish Gartley pattern at point D offers an excellent short-selling opportunity in the near term, with high probability and an attractive risk-reward ratio. The buy-on-retracement strategy has a lower probability but remains viable if the market correction is shallow. A long-term short could also provide solid gains if the key support at 29.73 is broken.
Keep an eye on support and resistance zones and monitor closely price action and confirmation signals on lower timeframes before taking action!
Verbundene Veröffentlichungen
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.