Good afternoon traders,
Do you remember the Silver flash crash? You can click the link for a little refresher of my thoughts around XAG/USD price action, but the following extract from that blog is key:
“With Silver known for its ability to maintain trends after higher time frame support/resistance levels hold, it will be interesting to see if we can get an intraday stepping pattern to build a long around down here.”
Well since that trend line reactivation, take a look at how price has continued north without looking back…
…well until now.
Check out that juicy pullback. That’s certainly the furthest price has pulled back on the daily for a while.
So turning our attention back to the quote from our last Silver blog above, if you do in fact believe that the higher time frame level has held, then you’d view this as simply a continuation of the stepping pattern that has been playing out and an opportunity to buy the dip.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog