Silver Price: A Range Trader’s Paradise

Forex Trading News & Analysis • Jan 13, 2016 at 1:14 PM EST

Silver maintains its $14.40 to $13.61 range, and it’s likely that range trading will dominate. Those keen on following trends will therefore probably be better off seeking out action elsewhere.

Silver failed to capitalise on yesterday’s dollar strength and for price momentum to pick up a break to the December low of $13.61 is needed. Until this happens, silver is dead in the water.

A break to the December low of $13.61 will probably encourage more sellers to step in, as a break to this level opens the door for a decline to the August 19 low of $13.48. A bearish breakout is also in line with the idea that the USD will gain in 2016 as the Fed hikes rates.

If a break does not occur, then silver prices may reach $14.25 as investors range trade the $14.40 to $13.61 range. However, as long as price is capped at $14.40, I will remain bearish in line with the longer term trend.

Silver Prices | FXCM: XAG/USD

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Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

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