Silver: New 1-year high at $17.22
Yesterday’s signals were not triggered, as there was no bearish price action at $16.82.
Today’s XAG/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 17.31 or 17.69.
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 16.98 or 16.82.
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
I wrote yesterday that I would take a bullish bias if the price could get established above $16.82 during the first few hours of the New York session, as it could then rise all the way to $17.30 before hitting another resistance level.
The price did get established above $16.82 and continued to rise all the way to make another 1-year high at $17.22 before pulling back a couple of times to get very close to the round number at $17.00 which seems to be supportive.
If the area at $17.00 can hold up, the price will become more likely to make another upwards thrust, possibly to a new 1-year high.
I would take a bullish bias if we get any firm bullish bounces at a support level. Although the picture seems to be becoming less bullish, it is a bullish sign that Silver outperformed Gold again yesterday.
There is nothing of high importance scheduled for release today concerning the USD.