- Silver prices pullback from pivotal resistance- broader opinion constructive above 17.50
- Updated targets cancellation levels
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Technical Outlook:Silver prices have continued to trade within a proportions of an impressive, well-defined descending pitchfork arrangement fluctuating off a Nov / Dec lows. The changed steel unsuccessful to reason above pivotal insurgency this week on building bearish dissimilarity during 18.33/37 – a segment tangible by a 50% retracement of a Jul decrease a 100% prolongation of a climb off a Dec lows. The pullback is now contrast a pivotal near-term support only next a 18-handle where a 200-day relocating normal converges on a 50-line of a descending slope formation.
Notes: A closer look during cost movement highlights this near-term slope joining and streamer into a tighten of Europe a risk stays for a near-term miscarry off this mark. That said, a broader concentration stays weighted to a topside while above 17.51 with a crack / tighten above 18.37 indispensable to countenance resumption of a uptrend. Subsequent topside objectives are eyed during 18.58, a 50-line (currently ~18.80) a 61.8% retracement during 19.03.
- A outline of IG Client Sentiment shows traders are net-long Silver- a ratio stands during +4.78 (82.7% of traders are long)- bearish reading
- Long positions are 0.5% reduce than yesterday though 0.8% higher from final week
- Short positions are 7.5% lower than yesterday and 17.9% reduce from final week
- Broader view continues to indicate reduce with a new drawdown in short-positioning serve highlighting a short-bias. From a trade standpoint, china prices are coming support while a concentration is lower, I’d be looking for a near-term miscarry before attempting entry.
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Other Setups in Play:
- NZD/USD Rebound Vulnerable Ahead of New Zealand CPI
- EUR/NZD Into Resistance- Pullback to Offer Entries
- EUR/USD Rallies to ‘Decision Point’
- GBP/AUD Range Break to Determine Next Leg- Constructive Above 1.62
- Strategy Webinar: Technical Levels amid a Geopolitical Minefield
– Written by Michael Boutros, Currency Strategist with DailyFX
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