Silver (XAGUSD), Daily
Silver is showing short term bullish clues as it retraces the May High (17.760) August low (13.96) down trend. Silver price now looks to be consolidating in a bullish pennant pattern. Moving average analysis spots a bull cross of the 10, 50 SMA with current price testing the yearly moving average. Stochastic Oscillator analysis confirms bullish momentum. Technically, long positions can be supported for a price objection near resistance level R1 (16.80). Alternatively, any price break below the bullish pennant may call for a test of support level 14.70. Traders should now be on alert for a breakout trade set-up in either direction; however, the bias does remain to the upside.
Chief Market Analyst
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.
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