- XAG/USD bulls struggle to break beyond bearish commitments.
- A bearish bias is firming up on the 4-hour timer frame.
As per the analysis earlier in the week, Silver Price Analysis: Bears about to take back control?, the price of silver is being held up at a key area of confluence:
4-hour chart
-637456436417254285.png)
As expected, the price is resisted at the overextended M-formation’s neckline and confluence between the 38.2%Fibonacci and a 50% mean reversion area.
Repeated failures here would be expected to see the precious metal decline into a longer-term support structure as identified in the prior analysis on the weekly and daily charts as follows:
-637455605586950543.png)
Daily charts
-637455606210997070.png)
The chart above was Wednesday’s illustration of the market structure depicting the bearish bias.
The chart below is the current state of play.
The prior day’s wick is expected to be filled in on the lower time frames in a downside extension contesting the 4-hour bullish correction.
-637456440651922332.png)
