Silver: Bullish new 1-year highs
Today’s XAG/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 16.50.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 10 cents in profit.
Remove 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 16.25 or 16.00.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
XAG/USD Analysis
Silver has moved to the centre of speculative interest in the markets as it rose very strongly last week to hit new 1-year high prices just above $16.50 per ounce. We had a sharp pull back and the price has not exceeded last week’s high. However, there is now support at $6.25 which looks healthy and if it holds up, we have a good chance at another bullish breakout beyond $16.50. It is still very possible there will be good long trade opportunities in this commodity and anything making strong new 1-year high prices deserves attention.
There is nothing of high importance due today regarding the USD.