Silver: Retreat from 18-month high near $17.50
Yesterday’s signals were not triggered, as there was no bullish price action at $17.23.
Today’s XAG/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of $17.23 or $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
Long entry following bullish price action on the H1 time frame immediately upon the next touch of $16.55.
Place 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
I took a bullish bias on Silver yesterday as the price was rising strongly and making new 18-month high prices, while Gold was also making new multi-year highs.
Unfortunately this did not work out so well as these rises were being driven by poor risk sentiment in the markets, but as the U.S. announced a delay in imposing tariffs on Chinese imports, risk sentiment recovered sharply very quickly, sending the price here shooting down all the way to $16.50 where it bounced.
Despite that strong fall, Silver is bouncing back now, and would look very bullish again if it can get established above the resistance at $17.23 which looks likely to be today’s pivotal point. I would take a bullish bias again today if it does so.
Concerning the USD, there is nothing of high importance due today.