Silver: New 18-month highs above $17.69
Yesterday’s signals were not triggered, as the bearish price action happened slightly above the resistance level identified at $17.69.
Today’s XAG/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of $18.20
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 Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of $17.50 or $17.23.
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 wrote yesterday that the price had risen strongly to challenge the resistance level at $17.69 which I identified some time ago. I had thought that $17.34 and $17.23 were interesting to watch for support at following a deep bearish retracement. However, the price only fell as far as $17.50 before reversing bullishly, which is a bullish sign, as this is not just a logical “flipped” support level but also a major psychological level.
The price has gone on to invalidate the former resistance which I had placed at $17.69 and we have a short-term bullish pennant pattern, both of which suggest that the price is going to break up to reach new 18-month highs. I will take a bullish bias if we get a strong hourly close above the upper trend line of this pennant during the New York session later today.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.