XAG/USD: silver prices are consolidating
25 January 2019, 08:27
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 15.45, 15.50 |
| Take Profit | 15.66, 15.70 |
| Stop Loss | 15.37, 15.30 |
| Key Levels | 14.88, 15.00, 15.09, 15.14, 15.21, 15.40, 15.47, 15.66, 15.75 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 15.17, 15.10 |
| Take Profit | 15.00 |
| Stop Loss | 15.24, 15.31 |
| Key Levels | 14.88, 15.00, 15.09, 15.14, 15.21, 15.40, 15.47, 15.66, 15.75 |
Current trend
Silver prices showed an unsteady downward trend on Thursday, continuing consolidation around the level of 15.30. The main drivers for USD in the market are the trade conflict between the PRC and the US, as well as the ongoing US government shutdown, which is beginning to seriously threaten the further growth of the US economy.
The senators could not agree on any of the two alternative draft laws, the adoption of which could end the shutdown. However, experts believe that after overcoming the problems, the previous rates of economic growth will be easily restored.
In addition, investors focus on macroeconomic statistics from the US. Manufacturing PMI rose from 53.8 to 54.9 points, while the forecast was 53.5 points. Services PMI fell from 54.4 to 54.2 points, which still is better than the forecast of 54.0 points.
Support and resistance
Bollinger Bands in D1 chart demonstrate a gradual decrease. The price range expands from below, making way for new local lows for the "bears". The MACD indicator tends to reverse into the ascending plane, but at the moment it keeps its previous sell signal (located below the signal line). Stochastic maintains a confident upward direction, pointing to the relatively strong potential for the development of the “bullish” trend in the ultra-short term.
One should wait for clarification of the situation at the market.
Resistance levels: 15.40, 15.47, 15.66, 15.75.
Support levels: 15.21, 15.14, 15.09, 15.00, 14.88.
Trading tips
To open long positions, one can rely on the breakout of 15.40 or 15.47. Take profit — 15.66 or 15.70. Stop loss — 15.37 or 15.30.
A breakdown of 15.21 or 15.14 may become a signal for further sales with target at 15.00. Stop loss — 15.24 or 15.31.
Implementation period: 2-3 days.
Silver prices showed an unsteady downward trend on Thursday, continuing consolidation around the level of 15.30. The main drivers for USD in the market are the trade conflict between the PRC and the US, as well as the ongoing US government shutdown, which is beginning to seriously threaten the further growth of the US economy.
The senators could not agree on any of the two alternative draft laws, the adoption of which could end the shutdown. However, experts believe that after overcoming the problems, the previous rates of economic growth will be easily restored.
In addition, investors focus on macroeconomic statistics from the US. Manufacturing PMI rose from 53.8 to 54.9 points, while the forecast was 53.5 points. Services PMI fell from 54.4 to 54.2 points, which still is better than the forecast of 54.0 points.
Support and resistance
Bollinger Bands in D1 chart demonstrate a gradual decrease. The price range expands from below, making way for new local lows for the "bears". The MACD indicator tends to reverse into the ascending plane, but at the moment it keeps its previous sell signal (located below the signal line). Stochastic maintains a confident upward direction, pointing to the relatively strong potential for the development of the “bullish” trend in the ultra-short term.
One should wait for clarification of the situation at the market.
Resistance levels: 15.40, 15.47, 15.66, 15.75.
Support levels: 15.21, 15.14, 15.09, 15.00, 14.88.
Trading tips
To open long positions, one can rely on the breakout of 15.40 or 15.47. Take profit — 15.66 or 15.70. Stop loss — 15.37 or 15.30.
A breakdown of 15.21 or 15.14 may become a signal for further sales with target at 15.00. Stop loss — 15.24 or 15.31.
Implementation period: 2-3 days.
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