SILVER XAGUSD Chart Technical Outlook the sell-off stalls at the 261.8% extension level of $30.21
We have seen an impulsive move to the downside since posting the all-time high of $34.86 on October 22. This sell-off has resulted in a loss in value of -12.85%.
From a technical perspective, we have a 261.8% extension level located at $30.21. This is close to the previous swing low of $30.11 from October 8. Demark indicators are close to, but have not completed, correction counts. What I am looking for is a spike through this support to take out weak longs and then for the commodity to correct to the upside. Over the medium term, I’m looking for the possibility of a bearish Head and Shoulders formation (with the right shoulder being close to the previous swing high of $32.95). This asset is on my watch list for a buying opportunity.
