Chart of the day

XAGUSD has bounced off the strong support 22.20. This bounce led to a strong upside reversal and a break above the falling wedge resistance 23.

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 26. If we get a confirmed break below 22.20 an upside reversal can be invalidated and we could see a downside reversal.

Long trade, you can open here with the stops below 22.20. We favor the long trade entries as we expect an upside extension from this vital support for a strong swing higher into 26.