News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.41%, while traders in France 40 are at opposite extremes with 77.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/YgQ2ZeoxGc
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.76% Gold: -1.70% Silver: -3.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FSY60AhcrF
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.53% France 40: 0.48% Wall Street: 0.36% Germany 30: 0.07% FTSE 100: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HMELco8gcz
  • Gold (XAUUSD) - Will the 50% Fib @ $1,763/oz hold this sell-off? #xauusd #gold @DailyFXTeam https://t.co/Oe9jyzvHOt
  • Iran Revolutionary Guards Commander says Iran will avenge killings of scientists as it has in the past - This is in response to reports that an Iranian nuclear scientist has been assassinated
  • Gold takes out both 1800 and 200DMA (1798), support at 1760-65 Silver down 4%, keep in mind, volumes notably thin amid the US Holiday, thus moves are likely exacerbated
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.40%, while traders in France 40 are at opposite extremes with 75.98%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lGo7KC5qlA
  • UK not accepting EU's fish offer - Sun Reporter $GBP
  • EU sources now saying Barnier won't be armed with this proposal, both sides still far apart - Daily Express https://t.co/LnGQ50eLXj
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.15% 🇳🇿NZD: 0.11% 🇦🇺AUD: 0.08% 🇯🇵JPY: 0.06% 🇨🇭CHF: -0.13% 🇬🇧GBP: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Hg4EBo6N2N
Silver Channel presents Selling Opportunity

Silver Channel presents Selling Opportunity

2012-01-06 22:19:00
Walker England, Forex Trading Instructor
Share:

Silver (XAG/USD) has slowly been forming a bearish pricing channel on our daily chart, over the last nine months. Channel support is formed by connecting the 2011 high at $49.87 with the July and September 2011 highs. Support of our channel is formed by connecting the May 2011 low at $32.37 to the September low of $26.13. As price now travels between these two levels, it is an opportune time to move to smaller term charts for further direction.

Silver_channel_presents_selling_op_body_Picture_1.png, Silver Channel presents Selling Opportunity

Divergence is a handy trading tool that compares price action, to an oscillator. Today, we will be looking at the XAG/USD 8hr chart and MACD with traditional 12,26,9 settings. The first step of spotting divergence is to spot the trend. In our chart below, we can see our downtrend continue, as lower lows are being created on the graph. Visually, we can see this by drawing a trend line connecting the higher lows being formed on our charts.

Next, we need to view MACD by utilizing the same steps above. We can connect out high points on the indicator for the same time duration that we viewed our price chart. Indicators by nature are lagging and will traverse a chart in the same manner as price. Divergence is spotted however, when price and an indicator take two different paths.

Below is an example of indicator divergence hidden inside of the trend. With price pointing downward under our trend line, but the indicator making a new high, we should appraise this as an opportunity to enter the established trend. The indicator essentially is acting as a spring board, loading up to a new high before rejoining price in creating a new low. Traders may even proceed to enter their trade on an oscillator crossover.

Silver_channel_presents_selling_op_body_Picture_2.png, Silver Channel presents Selling Opportunity

My preference is to sell entries Silver on a MACD crossover near $29.00. Stops should be set over resistance at $30.00. Primary profit targets may be set at $27.00, for a clear 1-2 risk reward ratio. Secondary targets may be set near our daily channel support line, at $21.40

Alternative scenarios include price breaking higher over short term resistance towards our channel line.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES