XAGUSD is reaching the strong upside resistance 24. A confirmed break above this resistance warrants a substantial upside extension.
Only a confirmed break above 24 will lead to an extension higher and a continuation above 24.60 to test the 26 key level for this year again.
Any short-term confirmed break below 23.50 would lead to a bearish swing lower to 21.40 again, for which we give a little more weight than an upside break above 24.60.
This could be a medium-term low-risk short trade, but we reserve the right to switch to a long trade in case of a break above 24.60.
You can take the short trade here with the stop loss just above 24.50 as we see a higher probability of a swing reversal lower. By placing this trade your RR ratio is 5.50. In the case, you are stopped you can reverse your trade to a long trade, especially in the case of a confirmed break above 24.60.
