SILVER: Bulls face key resistance at $14.62/68
Today’s XAG/USD Signals
Trades may only be taken from 8am to 5pm Tokyo time Tuesday.
Go short following a bearish price action reversal upon the next touch of $14.62 or the bearish trend line shown in the price chart below, which currently sits at $14.68.
Put the stop loss 1 cent above the local swing high.
Adjust the stop loss to break even once the trade is 7 cents in profit.
Take off 50% of the position as profit when the price reaches 7 cents in profit and leave the remainder of the position to ride.
There are no obvious support levels anywhere within realistic range of the current price, so no long trade opportunity is seen here.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
Silver, as measured in U.S. Dollars, has been in a long-term downwards trend for some considerable time. The price chart below shows that a long-term, symmetrical bearish price channel can be drawn. Obvious “flipped” horizontal support and resistance levels are much more difficult to identify – only one level stands out, the resistance at $14.62. Interestingly, that level is now quite close and perhaps confluent with the upper descending trend line of the bearish price channel. This means that a short trade opportunity taking advantage of a long-term bearish trend, a technical price channel, and a key resistance level seems likely to present itself, if only the price could trade a little higher to at least $14.62.
I would take a bearish bias if there is a solid bearish reversal anywhere between $14.62 and $14.68 today or tomorrow during the New York session.There is nothing of high importance due today concerning the USD.