Last Thursday, Silver took a 2.55% loss. The pair broke the support level at 27.584 at our 23.6% Fibonacci Retracement and fell short of reaching the second support level at 38.2%. Silver managed to recover 1.35% in the following sessions and moved laterally since then, indicating market uncertainty.
The price has been able to stay above the support at 27.58 for the last four trading sessions, and this helped the relative strength index fall to 52%, which will allow silver to continue its general uptrend in the medium term.
The Bollinger bands are closing and consolidating the uptrend. Volatility should be lower for the upcoming sessions as the bands are coming together aggressively. The short and long-term moving averages continue to move up, suggesting that the uptrend would continue.
Our parabolic SAR indicator has been suggesting a downtrend for six trading sessions, and it's our only indicator that supports a short signal. The Ichimoku cloud has been left behind, but as the trading days go by, the price could meet the cloud as it moves up, creating market uncertainty.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
Risk Warning: Trading Forex and Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for these products is available from Baxia to download from this website or hard copies may be obtained by contacting the Baxia office. The FSG and PDS should be considered before deciding to enter into any transactions with Baxia. The PDS available on this website does not constitute an offer to any person of any interests to whom it would not be lawful to make such an offer. The information on this website is not directed to residents of any country where FX and/or CFDs trading is restricted or prohibited by local laws or regulations.