Silver: Bullish breakout beyond $18.67
Yesterday’s signals were not triggered, as there was no bearish price action at $18.67.
Today’s XAG/USD Signals
Risk 0.75%.
Trades must be entered prior to 5pm Tokyo time Thursday.
Short Trade Idea
- Go short following bearish price action on the H1 time frame immediately upon the next touch of $20.00.
- 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 $19.00.
- 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 yesterday that the odds were now arguably in favour of a bearish breakdown from this consolidating triangle, so the best opportunity for a long trade entry might well be at $18.03. I was ready to take a long trade at a bullish bounce there, but I was also prepared to take a bullish bias if we had gotten a solid breakout above $18.67 later.
This was a good call as the solid breakout above $18.67 gave a large and fast gain. Although we see some bearish candlesticks on the hourly chart at the recent highs, Silver continues to break up to multi-year new high prices and the outlook is bullish. I would take a bullish bias today if the price closes for 2 consecutive hours above the high, or if we get a bullish bounce at $19.00 following a bearish retracement to that level.
There is nothing of high importance due today regarding the USD.