Thu, Feb 02, 2023 @ 17:08 GMT
HomeContributorsTechnical AnalysisXAG/USD: Bulls Targeting 24.788 on a Double Zigzag Pattern

XAG/USD: Bulls Targeting 24.788 on a Double Zigzag Pattern

Looking at the 1H timeframe, we see the development of the corrective wave b, which is part of the global zigzag. Correction b most likely takes the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The first four primary waves are completed, and the last wave Ⓩ is still under construction.

It is assumed that the primary wave Ⓩ will be a double zigzag of the intermediate degree (W)-(X)-(Y). After the end of the actionary wave (W), the price began an upward movement in the intervening wave (X). Like wave (W), intervening wave (X) may end in the form of a minor double zigzag W-X-Y.

The end of the bullish trend is expected near 24.788. At that level, wave (X) will be at 76.4% of wave (W).

According to an alternative scenario, the XAGUSD pair has completed the construction of an ascending intervening wave (X) of the intermediate degree. As in the main version, it has the form of a double zigzag W-X-Y.

Thus, in the next coming trading days, we can expect a fall in the XAGUSD rate and the formation of a bearish actionary wave (Y). Perhaps this wave will have a standard zigzag shape A-B-C, as shown in the chart.

The first target, where the bears are aimed, is located at the previous minimum of 17.538, which was marked by the actionary intermediate wave (W).

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