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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
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
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/HF3B9pG1FP
  • RT @XHNews: China's foreign exchange reserves came in at 3.0956 trillion U.S.D at the end of November, increased by 22.9 billion dollars fr…
  • Activity behind the Aussie Dollar is extreme - even compared to market-wide extremes (quiet). I talk about it in my $AUDUSD and AUD tech analysis for this week https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/Australian-Dollar-Forecast-Has-a-Systemic-Break-But-How-Far-Out-Is-It.html https://t.co/ZNKW1YqXkS
  • RT @BIS_org: Average daily turnover of OTC interest rate derivatives more than doubled over 2016-19 to $6.5 trillion, taking OTC markets’ s…
  • RT @BIS_org: Trading in emerging market currencies grew faster than major currencies 2016-19 to almost $1.6 trillion a day & 23% of global…
  • RT @BIS_org: The dollar #RepoMarket experienced stress in September - Following structural changes in the financial system, the reluctance…
  • RT @BIS_org: #AssetValuations in equity markets hinge on the (exceptionally low and negative) term premium; various indicators point to hig…
  • RT @BIS_org: The BIS Quarterly Review is out https://t.co/MyqyhpnTVR https://t.co/BRZeZoRBTN
  • oll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/PZSZ7OAtSN
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/qAYQhmOVUf
Silver Price Chart: XAG Rally Rips to Resistance at Fresh Yearly High

Silver Price Chart: XAG Rally Rips to Resistance at Fresh Yearly High

2019-07-22 18:00:00
Michael Boutros, Technical Strategist
Share:

Silver prices have rallied nearly 15% from the yearly lows registered in May with last week marking the largest weekly range since July 2017 and the largest single-week advance since June of 2016. Silver is now eyeing a critical resistance zone just above the yearly opening-range highs. These are the updated targets and invalidation levels that matter on the XAG/USD weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this silver price setup and more.

New to Trading? Get started with this Free Beginners Guide

Silver Price Chart – XAG/USD Weekly

Silver Price Chart - XAG/USD Technical Outlook - Silver Forecast

Notes: Silver prices broke above confluence resistance around the yearly open last week at 15.47 – a subsequent rally of more than 8% takes price into the first major resistance target at 16.61/66 – a region defined by the 100% of the November advance and the 38.2% retracement of the 2016 decline. Price registered a high at 16.59 last week and wile the broader focus is higher, the immediate advance may be vulnerable below this level with pitchfork resistance further highlighting this threshold over the next few weeks. Note that the yearly opening-range high comes in at 16.21 – price has yet to clear this on a close basis.

Initial support rests back at 16.21 backed by the February high-day close at 15.88- area of interest for downside exhaustion IF reached. Broader bullish invalidation now raised to 15.47. A topside breach of this key resistance zone exposes subsequent topside objectives at the June swing highs at 17.32 backed by the 50% retracement at 17.51.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: The silver price breakout is approaching the first major resistance hurdle at 16.61/66 – a breach / weekly close above is needed to keep the long-bias viable targeting 17 and beyond. From a trading standpoint, look to reduce long-exposure / raise protective stops on a stretch into key resistance. Ultimately, we’ll favor fading weakness while above 15.88 targeting a topside breach to fresh yearly highs.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

Silver Trader Sentiment (XAG/USD)

Silver Trader Sentiment - XAG/USD Price Chart - Silver Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Spot Silver - the ratio stands at a staggering +8.71 (89.7% of traders are long) – bearish reading
  • Long positions are 2.5% higher than yesterday and 8.5% lower from last week
  • Short positions are 8.3% lower than yesterday and 106.8% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Silver prices may continue to fall. Traders are further net-long than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger Silver (XAG/USD)-bearish contrarian trading bias from a sentiment standpoint.

See how shifts in Silver retail positioning are impacting trend- Learn more about sentiment!

---

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.