Silver Price Analysis: XAGUSD Falls to $57.10 After 10R Short Setup

The price of silver extends its decline to around the price of $57.17 after buying the unsuccessful consolidation that tested resistance over $59.50.

Notably, analyst David is seen “catching” this bearish move via a “short setup” with a 10-to-one risk: reward potential ratio. The daily chart XAGUSDT perpetual provides data for slowing the pace.

XAGUSD Short Reaches Planned Target

David’s XAGUSD short setup was established on the 30m charts at approximately $59.574 just after the bulls tried again to push price to $59.823 resistance, which rejected Price by forcing it to trade lower. The downside price target of the trade is approximately $57.060, so the risk-to-reward ratio was approximately $59.823 – $59.574 and about a 1-to-10 ratio of price-reward ratio, as the setup describes a “10R Reward Risk Ratio.”

This type of chart setup is known to have a solid strategy because no matter how high the profit is relative to the risk involved, it makes most cases easier since the setup clearly indicates the exit of both bulls and bears, and bears have clearly indicated their intentions to sell at the price.

Notably, the position and levels indicated in the 30m chart confirm that an intraday breakdown is created when the price fails to establish new highs over the previous supply-marked zone of rejection and later gives sellers the ability to control minor timeframe structure and also establishes a bearish sequence of price, as explained in the latter charts.

Resistance Rejection Drives Breakdown

Meanwhile, the seller’s defense against this resistance around $59.57 to $59.82 for multiple attempts failed, and then a break of the supporting level of $59.20 led to an aggressive decline as the price breached $58.80 and continued for another leg down, as illustrated by 15 minutes chart.

Even so, a series of consistent downtrends of lower highs and lower lows continues through all the sessions, and as soon as the price breached $58.10, a huge bearish engulfing then forced the price to dip lower near the $57.40 levels; consolidation occurs, as mentioned, near the $57.10 region for now.

Daily Data for the XAG/USD Perpetual Market

A separate 30m chart of XAGUSDT perpetual with trading indicators, which is a daily time frame on the Binance exchange, is showing the XAG/USD perpetual price at $57.17, currently up nearly 2.24%for the past day.

Average trading volume was reported near 9.5 million in day for the past month, which shows the general bear direction but is not related to the individual setup traded by the analyst. Daily RSI is presently 42.72; the moving average of the daily RSI is at 41.57.

The RSI recovered from earlier oversold, but the RSI has not yet crossed above the 50 level and will not be indicating control from bulls currently. MACD below the zero line has the MACD line at – 0.87 level and a signal line in position of -1.22, whereas the 0.35 score indicates the gradual easing of pressure of sell trend.