Silve (XAGUSD) - Forming a falling wedge

Silve (XAGUSD) - Forming a falling wedge

Namita Khurana
11 Oct 2019 06:02 PM
Analysing daily chart of XAGUSD, we observe that after a sharp rally in the price action, the price action entered a consolidation phase. We can notice the formation of a falling wedge by the price action formed by connecting the upper trend line and lower trend line with the upper trend line acting as a resistance to the price action and the lower trend line acting as a support to the price action. We also observe that the200-day Simple Moving Average (SMA) is also acting as a support to the price action. The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. The price action has started trading below the 50-day SMA having given a close below this SMA in the last session indicating a short-term downtrend.

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