XAG/USD: silver prices are consolidating
29 January 2019, 08:37
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 15.80 |
| Take Profit | 16.00 |
| Stop Loss | 15.66 |
| Key Levels | 15.40, 15.47, 15.58, 15.66, 15.75, 15.84, 16.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 15.60 |
| Take Profit | 15.47, 15.40 |
| Stop Loss | 15.75, 15.80 |
| Key Levels | 15.40, 15.47, 15.58, 15.66, 15.75, 15.84, 16.00 |
Current trend
Silver prices showed ambiguous dynamics on Monday, correcting after steady growth at the end of the previous trading week. The instrument is still supported by uncertain prospects of further increase of the Fed interest rate.
In addition, investors are focused on the development of the domestic political crisis in the United States and are discussing the issue of the US-China trade conflict. The next negotiations between the representatives of Washington and Beijing should take place on January 30–31. Chinese proposals on increasing the volume of imports of American products over the next six years by USD 1 trillion annually will probably be discussed at the negotiations.
The speech of the ECB President, Mario Draghi, who negatively responded to the current economic situation in the region, influenced the trading of the instrument on Monday. As the main reasons for the economy slowdown, the official noted geopolitical factors and the continuing threat of protectionism.
Support and resistance
Bollinger Bands on the D1 chart demonstrate flat dynamics. The price range slightly expands, fully consistent with the observed trading activity in the market. MACD indicator is growing preserving a moderate buy signal (located above the signal line). Stochastic keeps a steady upward direction but is approaching its highs, which reflects the overbought silver in the ultra-short term.
Existing long positions should be kept until the situation clears up.
Resistance levels: 15.75, 15.84, 16.00.
Support levels: 15.66, 15.58, 15.47, 15.40.
Trading tips
To open long positions, one can rely on the breakout of 15.75. Take profit — 16.00. Stop loss — 15.66.
The rebound from 15.75 as from resistance with the subsequent breakdown of 15.66 can become a signal to begin correctional sales with target at 15.47 or 15.40. Stop loss — 15.75 or 15.80.
Implementation period: 2-3 days.
Silver prices showed ambiguous dynamics on Monday, correcting after steady growth at the end of the previous trading week. The instrument is still supported by uncertain prospects of further increase of the Fed interest rate.
In addition, investors are focused on the development of the domestic political crisis in the United States and are discussing the issue of the US-China trade conflict. The next negotiations between the representatives of Washington and Beijing should take place on January 30–31. Chinese proposals on increasing the volume of imports of American products over the next six years by USD 1 trillion annually will probably be discussed at the negotiations.
The speech of the ECB President, Mario Draghi, who negatively responded to the current economic situation in the region, influenced the trading of the instrument on Monday. As the main reasons for the economy slowdown, the official noted geopolitical factors and the continuing threat of protectionism.
Support and resistance
Bollinger Bands on the D1 chart demonstrate flat dynamics. The price range slightly expands, fully consistent with the observed trading activity in the market. MACD indicator is growing preserving a moderate buy signal (located above the signal line). Stochastic keeps a steady upward direction but is approaching its highs, which reflects the overbought silver in the ultra-short term.
Existing long positions should be kept until the situation clears up.
Resistance levels: 15.75, 15.84, 16.00.
Support levels: 15.66, 15.58, 15.47, 15.40.
Trading tips
To open long positions, one can rely on the breakout of 15.75. Take profit — 16.00. Stop loss — 15.66.
The rebound from 15.75 as from resistance with the subsequent breakdown of 15.66 can become a signal to begin correctional sales with target at 15.47 or 15.40. Stop loss — 15.75 or 15.80.
Implementation period: 2-3 days.
No comments:
Write comments