12.18 Silver (XAG) Afternoon Thoughts

Silver (XAG) has formed a small double top pattern on the 1h level, with the neckline constituting a typical short-term reversal signal in an uptrend. The price has broken the upward rhythm along the ascending channel, indicating a technical need to retrace to the lower edge of the channel after deviating from the moving average.

On the 30min level, a small head and shoulders top prototype has emerged, concurrently forming a pressured pattern at the end of an ascending wedge. The overlap of these two reversal patterns further confirms short-term downward momentum.

Overall, it presents the characteristics of a top reversal pattern and momentum exhaustion, with the 1h double top being a trend-level signal, and the 30min head and shoulders top and wedge forming a timing-level confirmation signal. The short-term trend is primarily a pullback.

In terms of operation, the signal in the oscillation area is not obvious, and a cautious approach can be taken for right-side trading:

65.8-65.6 breaking down to chase shorts on the right side, with a pullback to 66 acting as resistance for a second entry, targeting 64.9 and 63.8.