Apr 7, 2020, 9:35:24 AM

XAG/USD: silver prices rise

Current trend

Today, during the Asian session, silver prices show an active upward trend, renewing local highs since March 13. The instrument is supported by the strengthening of alarming market sentiment due to a sharp slowdown in the global economy. The quarantine measures that many countries take today in connection with the spread of coronavirus have an extremely negative effect on almost all sectors of the economy, threatening the onset of a long period of recession or even depression. Demand for the dollar remains high but also suffers from the publication of disappointing data from the US, which indicates a record drop in the labor market, rising unemployment, and declining manufacturing activity.

Support and resistance

On the daily chart, Bollinger bands are actively growing. The price range is narrowing, reflecting the multidirectional trading dynamics in the short term. The MACD indicator is growing, maintaining a strong buy signal (the histogram is above the signal line). Stochastic, approaching its highs, reversed into a horizontal plane, indicating that the instrument is overbought in the ultra-short term.

The current readings of technical indicators do not contradict the further growth of the instrument in the nearest time intervals. However, it is better not to open new long positions until renewed signals from indicators appear.

Resistance levels: 15.51, 16.00, 16.29, 16.62.

Support levels: 15.00, 14.69, 14.00, 13.50.

Trading tips

Long positions may be opened after the breakout 15.51 with the target at 16.29 or 16.62. Stop loss – 15.00 or 14.69.

Short positions may be opened after a rebound from 15.51 and a breakdown of 15.00 or 14.69 with the target at 14.00 or 13.50. Stop loss – 15.51–15.80.

Implementation period: 2–3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    15.53

  • Take Profit

    16.29, 16.62

  • Stop Loss

    15.00, 14.69

  • Key Levels

    13.50, 14.00, 14.69, 15.00, 15.51, 16.00, 16.29, 16.62

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    14.97, 14.65

  • Take Profit

    14.00, 13.50

  • Stop Loss

    15.51, 15.80

  • Key Levels

    13.50, 14.00, 14.69, 15.00, 15.51, 16.00, 16.29, 16.62

Tifia trading account

Open

Silver analysis for today.