Forex Trading Library

XAGUSD Correction b Pulls Silver Lower

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A closer look at the 1H timeframe shows a large corrective wave b which is part of the global zigzag. Correction b most likely takes the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The final primary wave Ⓩ looks to be a double zigzag of the intermediate degree (W)-(X)-(Y). After the end of the actionary wave (W), prices moved higher in the intervening wave (X). Like wave (W), intervening wave (X) can end in the form of a minor double zigzag W-X-Y.

The end of the bullish trend is likely near 22.420. At that level, wave (X) will be 61.8% of wave (W).

An alternative scenario assumes that the XAGUSD pair has completed 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 drop in the value of XAGUSD 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 for bears is at the previous minimum of 17.538. This was marked by the actionary intermediate wave (W).

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