Monday, February 8, 2016 10:50 AM EDT
With the USD in general retreat and risk-off dominating the stock markets, the demand for haven-assets such as silver and gold has increased.
In the case of silver prices, the short-term trend is bullish above $14.62, which is a swing lower from its position on February 3. Traders will most likely see a pullback to the $14.85 to $14.75 range as an opportunity to add to their long exposure, as the risk/reward ratio is good here. The alternative entry is a break to last week’s high of $15.08 which will most likely trigger pending entry orders as well as stop loss orders layered above this high.
The next strong resistance and target level for bullish traders is the October 10 low of $15.65, a target also supported by gold prices. Silver’s correlation to gold suggests that it should be trading at $15.80.
A level more suitable for short-term traders, is $15.35, which is the 61.8% correction to the October high of $16.38.
Silver Prices | FXCM: XAG/USD
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
DailyFX, the free news and research website of leading forex and CFD broker ...
more
DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
DISCLOSURES
less
How did you like this article? Let us know so we can better customize your reading experience.