XAG/USD Forex Signal - 2 September 2019

Adam Lemon

Silver: Consolidating triangle below $18.50

XAG/USD Daily Forecast 2nd September 2019

Last Thursday’s signals produced a long trade from the bullish rejection of the support level identified at $18.03 which would be in floating profit right now.

Today’s XAG/USD Signals

Risk 0.75%.

Trades must be entered between 9am and 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of $18.45 or $18.66.
  • 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 run.

Long Trade Idea

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of $18.03.
  • 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 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 last Thursday that I remained bullish on Silver especially above $18.67. It seems that level was good at least as the day’s pivotal point as after getting close, the price was not able to breach it or even retest it.

The price is now filling within a consolidating triangle with a new resistance level at $18.45. My support level from last Thursday of $18.03 held to the pip and produced a long trade following the pullback.

The odds seem to still be slightly in favour of higher prices soon, and the first sign of such a bullish movement would be a breakout beyond $18.50. If the price can close above that level for a couple of consecutive hours during the forthcoming Asian session, I would take a bullish bias again.

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There is nothing of high importance due today regarding the USD, it is a public holiday in the U.S.A. today.

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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