XAG/USD Forex Signal - 29 August 2019

Adam Lemon

Silver: New 18-month highs above $18.60

Yesterday’s signals were not triggered.

Today’s XAG/USD Signals

Risk 0.75%.

Trades may only be taken prior to 5pm Tokyo time Friday.

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of $18.66.

  • 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 ride.

Long Trade Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of $18.03.

  • 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 ride.

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 resistance at $18.20 had been invalidated and the price showed every sign of breaking higher still, with no key resistance ahead until $18.69.

I took a bullish bias on Silver in USD terms for the day.

This was a good call as the price has continued to advance all the way to $18.63.

The action has tailed off, but it is better to ride this very strong bullish movement until it stops instead of trying to pick a top.

I remain very bullish on Silver, but I also note that the price has just begun to falter a little slightly below the resistance level shown in the price chart below at $18.67. A sustained break above that level would signify that the price could take off all the way to $19 or even $20 which should be a major psychological level.

I am bullish above $18.67 today.XAGUSDRegarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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