Apr 9, 2020, 9:17:59 AM

XAG/USD: silver continues to go up

Current trend

The price of silver futures continues to rise, reaching USD 15 per ounce, along with the USD Index, which is also strengthening, but this time the metal quotes look stronger and are in no hurry to decline. The number of speculative positions in silver continues to decline, but the pace of the fall slowed down and, according to the CFTC, the number of positions is 30.9K after 42.0K a week earlier.

China continues to rebuild its economic capacity and the consumer demand in the metals market is starting to grow moderately. Chinese Caixin Services PMI in March amounted to 43 points, which is much better than 26.5 points in February. An extensive block of data on price indices of the PRC is expected on Friday. The dynamics of precious metals for the future will depend on these indicators.

Support and resistance

Correctional growth in the asset continues within the ascending channel. At the moment, the asset is traded near the channel support line and movement towards the resistance line looks very likely. Despite the fact that the range of EMA fluctuations on the Alligator indicator is quite narrow, the global buy signal continues to operate.

Resistance levels: 15.40, 16.50.

Support levels: 14.60, 13.80.

Trading tips

If the asset continues corrective growth and the price consolidates above the resistance level of 15.40, buy positions will be relevant with target at 16.50. It is advisable to place the stop-loss below the local low at 15.00.

If the asset declines globally, and the price consolidates below the local support line at 14.60, short positions can be opened with the target at 13.80 and stop-loss at 15.00.

Implementation time: 5 days and more.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY STOP

  • Entry Point

    15.40

  • Take Profit

    16.40

  • Stop Loss

    15.00

  • Key Levels

    13.80, 14.60, 15.40, 16.50

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    14.60

  • Take Profit

    13.80

  • Stop Loss

    15.00

  • Key Levels

    13.80, 14.60, 15.40, 16.50

Tifia trading account

Open

Silver analysis for today.