Falling Wedges in Silver and Copper
Metals like silver and copper have been grinding lower for more than a year. This may create potential for bullish reversals -- especially after today’s softer-than-expected inflation report.
Falling wedges are developing on the weekly charts of both metals. That pattern may suggest downward movement is slowing, with the possibility of turns to the upside.
XAGUSD, for example, peaked in early 2021. It made lower highs steadily through the beginning of this year. But then it broke the bearish direction and started building support at the descending resistance line. A new falling trendline began in May, which now represents the top of the pattern.
A close above October’s highs around 23.70 could confirm a breakout from the wedge.
XCUUSD Copper made its peak in March 2022, with successively lower highs throughout 2023. It’s also made lower lows, but at a slower pace than the lower highs. A weekly close above roughly 3.76 could trigger an upside reversal.
Finally, intermarket conditions likely remain key. Further weakness in the U.S. dollar and downside in Treasury yields could support breakouts in these metals.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Falling wedges are developing on the weekly charts of both metals. That pattern may suggest downward movement is slowing, with the possibility of turns to the upside.
XAGUSD, for example, peaked in early 2021. It made lower highs steadily through the beginning of this year. But then it broke the bearish direction and started building support at the descending resistance line. A new falling trendline began in May, which now represents the top of the pattern.
A close above October’s highs around 23.70 could confirm a breakout from the wedge.
XCUUSD Copper made its peak in March 2022, with successively lower highs throughout 2023. It’s also made lower lows, but at a slower pace than the lower highs. A weekly close above roughly 3.76 could trigger an upside reversal.Finally, intermarket conditions likely remain key. Further weakness in the U.S. dollar and downside in Treasury yields could support breakouts in these metals.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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