A correction trend is being built on XAGUSD. A global triple zigzag is developing, in which a cycle wave y has been forming for about six months. It took the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
At the time of writing, the initial part of the cycle intervening wave x is under development. It is difficult to say exactly what form it will take, but the wave could continue to the level of 28.02.
At the specified price level, wave x will be at 76.4% of cycle wave y. This is a frequent coefficient in zigzags.
However, the market may continue to move in a downward direction within wave y.
In the last section of the chart, we see that the formation of a bullish wave (X) in the form of a double zigzag has ended. Then prices started declining in the intermediate actionary wave (Z).
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Wave (Z) takes the form of a minor simple zigzag A-B-C, where impulse A and correction B have already been built.
In the near future, an impulse decline in the minor wave C to the level of 20.38 is possible. At that level, wave (Z) will be at 76.4% of wave (Y).
Article by Orbex
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