XAGUSD, Daily
Silver like many commodities has had a good start to 2016, rising over 14% from January’s open at $13.85 to close yesterday at $15.87. This was on the back of a commodity rally and USD weakness following the dovish tones from the FED on Wednesday. Thursdays close for Silver represented a new 2106 high and above previous resistance at $15.70.
The next leg up could be interesting, there is resistance at the psychological $16.00 and $16.05.
Silver is classified as an industrial metal and so moves in different although similar phases to the Gold price which is very much a precious metal and safe haven asset. Silver has not moved as aggressively as Gold during 2016 and we believe there could be further for the silver rally to run as the fundamentals of strong demand for bars and coins builds.
An initial T1 target of $16.10 (October 2015 high) and then to previous high (T2) of $16.25.
Always trade with strict risk management and remember that your capital is the single most important financial aspect of your trading business.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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