Silver: Bulls testing new 1-year high at $16.82
Today’s XAG/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 16.82.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 10 cents in profit.
Remove 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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 16.55 or 16.30.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 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
Gold has been reaching new 6-year highs over recent days and Silver was lagging behind. However, yesterday’s strong market movements were felt more strongly in Silver than Gold, so Silver is back in the spotlight and worth focusing on after rising by more than 2% since New York closed yesterday to reach a new 1-year high at $16.82 per ounce.
These are bullish signs, but bulls face the obstacle of the resistance level at $16.82 which has already been touched and looks very likely to be today’s pivotal point. I would take a bullish bias if the price can get established above $16.82 during the first few hours of the New York sessions, as it could rise all the way to $17.30 before hitting another resistance level.
There is nothing of high importance scheduled for release today concerning the USD.