Silver Prices Testing Key Support Hurdle

Talking Points

  • Silver prices eye pivotal near-term support during 17.50
  • Updated targets cancellation levels
  • Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT

Silver Daily

XAG/USD Daily Chart

Technical Outlook: Earlier in a month we highlighted a hazard of a near-term turnover in china prices with key support remarkable during 17.50. Since then, prices are down scarcely 3% with today’s low (so far) Registering during 17.53. Note that a decrease will have noted a 7th uninterrupted daily decrease if we were to tighten during these levels, and while that’s not a reason to get bullish, prices are entrance into an area of support and might extent a downside near-term.

Silver 240min

XAG/USD 240min Chart

Notes: A closer demeanour during cost movement serve highlights this near-term support connection during 17.52 this turn now also converges on a 61.8% retracement of a Mar advance. Near-term bearish cancellation now lowered to 17.95 with a crack above 18.33/39 still indispensable to put a long-bias behind in control.

A mangle next this symbol targets 17.33 – a turn tangible by a 1/18 pitch high a 100-day relocating average- with successive support objectives eyed 17.03 16.82. From a trade standpoint, I’m looking for near-term support here basically, with a miscarry to offer some-more auspicious brief entries targeting a new low.

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Silver Prices Testing Key Support Hurdle

  • A outline of IG Client Sentiment shows traders are net-long Silver- a ratio stands during +6.35 (86.4% of traders are long)- bearish reading
  • Long positions are 5.9% aloft than yesterday and 8.3% higher from final week
  • Short positions are 10.9% lower than yesterday and 24.3% reduce from final week
  • The continued build in prolonged positioning points reduce for china though a new chasm of a short-side also suggests that a evident decrease might be exposed here- generally as prices come into near-term support. It’s also value observant that a many new Commitment of Traders news continued to uncover a record prolonged position and keeps a broader risk weighted to a downside from a view standpoint.

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex hit him during mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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