XAGUSD is testing the strong upside support of 22. A break below this uptrend channel support line will lead to a significant pullback to 20.55.
A pullback to 20.50 is not excluded and it would not be a bearish reversal still. An upside continuation from 20.50 is possible and would make this price action formation a cup&handle.
Any short-term confirmed break above 22.60 would lead to a bullish swing higher to 23.70, but we give a little more weight to a bearish resumption and a short trade.
Short-term this is a perfect place to go short with low risk on a trade and a good reward.
You can take the short trade here with the stop loss just above 22.60 as we see a higher probability of an extension lower to 20.50. By placing this trade your RR ratio would be ideal. In the case, you are stopped you can reverse your trade to long trade entry but not advisable in this stage
