XAG/USD: silver is significantly oversold
21 August 2018, 14:30
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY LIMIT |
| Entry Point | 14.60 |
| Take Profit | 15.60, 16.10, 16.40 |
| Stop Loss | 14.15 |
| Key Levels | 13.50, 14.00, 14.30, 14.60, 15.00, 15.30, 15.60, 16.90, 16.10, 16.40, 16.75 |
Current trend
Throughout the summer, silver is falling due to a decrease in demand in the commodity market.
After increasing taxes on steel and aluminum for Turkey, the precious metal has significantly weakened. Sanctions affected negatively not only the Turkish currency, steel, and aluminum, but also the entire commodity market. In the past few days, the instrument regained some losses and is now trading at around 14.85.
This week, special attention should be paid to the data on the labor market and Durable goods orders in the USA.
Support and resistance
After a significant decline in the past two months, the price can reverse into the sideways consolidation in the medium term. In the future, the instrument is expected to restore to the levels of 16.10, 16.40.
In case of serious fundamental pressure, an alternative scenario is possible: the breakdown of the August low at the level of 14.30 and the movement to the historical minimum at 13.50.
On the 4-hour chart, technical indicators reflect the possibility of a transition to sideways dynamics, MACD volumes of short positions are falling due to the closing of the profitable positions at the lows, and Bollinger bands are reversing.
Resistance levels: 15.00, 15.30, 15.60, 16.90, 16.10, 16.40, 16.75.
Support levels: 14.60, 14.30, 14.00, 13.50.
Trading tips
It is relevant to increase the volumes of pending long positions from the level of 14.60 with the targets at 15.60, 16.10, 16.40 and stop loss 14.15.
Throughout the summer, silver is falling due to a decrease in demand in the commodity market.
After increasing taxes on steel and aluminum for Turkey, the precious metal has significantly weakened. Sanctions affected negatively not only the Turkish currency, steel, and aluminum, but also the entire commodity market. In the past few days, the instrument regained some losses and is now trading at around 14.85.
This week, special attention should be paid to the data on the labor market and Durable goods orders in the USA.
Support and resistance
After a significant decline in the past two months, the price can reverse into the sideways consolidation in the medium term. In the future, the instrument is expected to restore to the levels of 16.10, 16.40.
In case of serious fundamental pressure, an alternative scenario is possible: the breakdown of the August low at the level of 14.30 and the movement to the historical minimum at 13.50.
On the 4-hour chart, technical indicators reflect the possibility of a transition to sideways dynamics, MACD volumes of short positions are falling due to the closing of the profitable positions at the lows, and Bollinger bands are reversing.
Resistance levels: 15.00, 15.30, 15.60, 16.90, 16.10, 16.40, 16.75.
Support levels: 14.60, 14.30, 14.00, 13.50.
Trading tips
It is relevant to increase the volumes of pending long positions from the level of 14.60 with the targets at 15.60, 16.10, 16.40 and stop loss 14.15.
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