Silver: Bulls testing 1-year high above $16.50
Last Monday’s signals were not triggered, as there was no bullish price action when the price reached the support level that day, identified at $16.25.
Today’s XAG/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 16.82.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 10 cents in profit.
Take off 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to run.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 16.25 or 16.00.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 seemed well positioned to make another upwards thrust on Monday after reaching a 1-year high above the big half number at $16.50 at the end of the previous week. However, that day the price reacted bearishly and appeared to break below the support at $16.25. A little surprisingly, the price made a strong recovery over the next day and is now struggling to really get established above the resistance at $16.50 which is getting slowly eaten up and invalidated. If the price holds up and then breaks really solidly above $16.50 in the early part of the New York session, I would be very bullish and look to trade long up to at least $16.75 and possibly even higher than that.
There is nothing of high importance due today regarding the USD.