XAG/USD Forex Signal - 27 May 2019

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SILVER: Bulls face key resistance at $14.62/68

Today’s XAG/USD Signals

Risk 0.75%.

Trades may only be taken from 8am to 5pm Tokyo time Tuesday.

Short Trades

  • 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.

Long Trade

  • 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.

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XAU/USD Analysis

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.XAGUSDThere is nothing of high importance due today concerning the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.