Silver: New 18-month high near $17.50
Today’s XAG/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of $17.69.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 10 cents in profit.
Take off 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to run.
Long Trade Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of $17.23.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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.
XAG/USD Analysis
The price of spot silver has risen again dramatically, after spending several days off its highs. The price has risen by more than 2.60% since the start of the previous Tokyo session and looks set to rise higher as it breaks to new 18-month high prices, which should be a bullish sign.
There are two obstacles that bulls might want to consider: the major psychological level at $17.50 which is very close at the time of writing, and the key resistance level above that at $17.69.
The bullish picture is arguably increased by the fact that Gold is also breaking to new multi-year high prices above $1525.
I take a bullish bias on Silver today.
Concerning the USD, we will get CPI (inflation) data at 1:30pm London time.