Silver: New 18-month highs above $18.60
Yesterday’s signals were not triggered.
Today’s XAG/USD Signals
Risk 0.75%.
Trades may only be taken prior to 5pm Tokyo time Friday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of $18.66.
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 ride.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of $18.03.
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 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
I wrote yesterday that the resistance at $18.20 had been invalidated and the price showed every sign of breaking higher still, with no key resistance ahead until $18.69.
I took a bullish bias on Silver in USD terms for the day.
This was a good call as the price has continued to advance all the way to $18.63.
The action has tailed off, but it is better to ride this very strong bullish movement until it stops instead of trying to pick a top.
I remain very bullish on Silver, but I also note that the price has just begun to falter a little slightly below the resistance level shown in the price chart below at $18.67. A sustained break above that level would signify that the price could take off all the way to $19 or even $20 which should be a major psychological level.
I am bullish above $18.67 today.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.