(XAGUSD) Volume Absorption to Bullish Continuation To Target

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(XAGUSD) Volume Absorption to Bullish Continuation To TargetXAG/USD SpotFX:XAGUSDGoldMasterTrades🧱 1. Market Structure Breakdown: The 4H chart of Silver (XAGUSD) reveals a well-structured price action sequence, beginning with a compression breakout, a strong bullish impulse, and a current retracement phase into a key reversal zone. 🔺 Symmetrical Triangle & Volume Absorption (Early July): The market was forming higher lows and lower highs, indicative of consolidation inside a symmetrical triangle. During this phase, a volume absorption event occurred—indicating smart money was accumulating before a breakout. This was followed by a strong bullish breakout, confirming upside strength and clearing previous highs. 📈 2x Channel Supply Zone — Now Demand: After breaking above the triangle, the price surged into a key supply zone, created from a prior channel top. This zone was tested, absorbed, and flipped into a new demand zone, as buyers overwhelmed sellers. This supply-demand interchange confirmed a structural change in market sentiment. 🚀 2. Momentum Confirmation — High Breakout: The "High Breaked" level, marked clearly on the chart, acted as a bullish breakout trigger. This breakout not only breached the prior resistance but established a new bullish leg—providing strong confirmation of trend continuation. 🔁 3. QFL Zone & Controlled Pullback: After the surge, the price began to correct from the QFL (Quick Flip Level). This level usually represents an area where short-term distribution or profit-taking occurs. The pullback from this zone was controlled but sharp, which is natural after such a strong move up. 🟩 4. Next Reversal Zone — The Critical Demand Block: Price is now entering a high-probability reversal zone, marked around $37.5–$36.8. This area is critical due to: Confluence with previous structure and minor support. Potential bullish absorption area. Last base before the impulse up. If bullish price action (like bullish engulfing, pin bar, or volume spike) is seen here, it could signal the start of the next leg up. 🧨 5. Key Warning: "If it crosses, this will be Supply Double" If this zone fails to hold, the demand will flip into double supply, likely accelerating bearish momentum. In such case, Silver may revisit Major Support near the $36.0–$35.5 zone. 🧭 Potential Trading Scenarios: ✅ Bullish Path (Primary Expectation): Price reacts from the reversal zone with bullish momentum. Breaks back into the Central Zone (~$38.5). Forms a higher low → continuation toward $39.5–$41.0. Breakout above the recent swing high confirms the continuation pattern. Trade Idea: Long entries near $37.2–$37.5 with SL below $36.8. Target zones: $38.8 (short-term), $39.8–$41.0 (swing). ❌ Bearish Continuation (Alternative Plan): Reversal zone fails to hold. Price breaks and closes below $36.8. Previous support becomes resistance — bearish retest. Continuation toward $36.0–$35.5 zone. Trade Idea: Short on break and retest of $36.8. SL above the reversal zone. TP near $35.5 or based on volume exhaustion. 🧠 Market Psychology Insight: This setup shows a clear institutional playbook: Accumulation → Breakout → Profit-taking → Retest → Continuation. If smart money is active, expect defense of the reversal zone followed by a strong bounce.