Silver continue to move as part of the correction and the formation of an inverted “Head and Shoulders” reversal pattern. At the time of the forecast release, Silver prices are at 22.31. Moving averages indicate a bearish trend. Prices broke through the area between the signal lines upward, which indicates pressure from the buyers of the asset and a potential continuation of the rise in value already from the current levels. At the moment, we should expect an attempt to develop a decrease in the value of the metal and a test of the support level near the 21.95 area. Where can we expect a rebound and a continued rise in the price of Silver with a target above the level of 25.25.
XAG/USD Forecast Silver and Analysis October 7, 2021
An additional signal in favor of raising quotes and prices for XAG/USD Silver will be a test of the trend line on the relative strength index (RSI). The second signal in favor of growth will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. Cancellation of the option to raise Silver prices on October 7, 2021 will be a fall and a breakdown of 20.75. This will indicate a breakdown of the support area and a continued fall to the area below the level of 18.35. Expect an acceleration in the rise of XAG/USD quotes with the breakdown of the resistance area and closing of the price above the level of 23.25, which will indicate a breakdown of the upper border of the reversal pattern.
XAG/USD Forecast Silver and Analysis October 7, 2021 suggests an attempt to test the support area near the 21.95 level. Further, the continuation of the rise in quotations with a target above the level of 25.25. Cancellation of the growth option for Silver prices will be a fall and a breakdown of the level of 20.75. This will indicate a breakdown of the support level. In this case, we should expect the price to continue falling below the level of 18.35.
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