FXOpen
After breaking the short term trendline support, Silver is now threatening the long term channel support. The precious metal is showing some real downside risk, a bearish breakout through the trendline might result into the fresh lows of 2014.
Technical Analysis
As of this writing, the white metal is being traded around $19.39. A hurdle may be noted around $19.68 which is a confluence of the 23.6% fib level and trendline support turned resistance. A daily close above the trendline resistance will push the pair again into bullish momentum, opening doors for the $22.00 resistance area in the medium term.
On the downside, the pair is expected to find a support around $19.24 that is the long term channel support. A break and daily closing below the channel support will open doors for the double bottom support area below $19.00. It is however pertinent to mention here that the recent supply concerns about Silver might keep the price supported near the $19.00 area.
China PMI
Today HSBC Holdings is due to release the Manufacturing Purchasing Managers Index (PMI) report for China. According to median projection of different analysts, the PMI increased modestly to 48.4 this month as compared to 48.0 points in the month before. Generally speaking, a reading above 50 points shows expansion in the manufacturing activity and vice versa, so better than expected actual outcome will be seen as bearish for Silver.
Trade Ideas
Keeping in view the supply concerns relating to Silver and overall macro-economic outlook, there could be two strategy to trade Silver. First, buy the precious metal near the channel support, keeping the stop loss just below the trendline. Secondly, consider buying near the double bottom support area.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Anchored VWAP and How You Can Use It in Forex Trading
In the world of forex trading, understanding the nuanced tools at your disposal can significantly enhance decision-making processes. One such sophisticated tool is the Anchored Volume-Weighted Average Price (Anchored VWAP), which refines the standard VWAP by allowing traders to set
META Share Price Collapses after Publication of Quarterly Report
Just yesterday, META's stock price closed at USD 493.50, up approximately 40% since the start of 2024 and up nearly 300% since the start of 2023.
However, following the release of Meta's quarterly report, its shares plummeted to USD
USD/JPY Analysis: The Rate Exceeds The Level of 155 Yen Per US Dollar
Today, the price of USD/JPY once again renewed its 34-year high, exceeding the level of 155 yen per dollar, which put pressure on the current authorities.
According to Reuters, officials are trying to maintain calm in the market.
"We