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
Oil - US Crude
Wall Street
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
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
More View more
Real Time News
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/MhP7opgk4a
  • Investors in stocks, commodity currencies and energy have been praying for a massive fiscal bazooka to combat the virus effects. It looks like they’re going to get it. Get your market update from @DavidCottleFX here:https://t.co/e2ciGSYftY https://t.co/Udoi5UMJrl
  • The ‘V-shaped’ recovery in USD/JPY just failed to hit its target and is now moving lower again. Important support is now being tested. Get your $USDJPY technical analysis from @nickcawley1 here: https://t.co/koiac0Rxvs https://t.co/CsVsS7PVMV
  • The Australian Dollar has been lifted from its multi-year lows by hopes that global financial authorities can fend off the worst of the #coronavirus‘ effects. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/GC5pwNbY9S https://t.co/OryobNq7uL
  • Before considering to enter a position, price action must come into contact with the upper or lower channel line at least three times. Learn how to validate a channel here: https://t.co/Rd5hDm7gRo https://t.co/mubPgmDRRY
  • A tidal wave of cash waits to return to virus-battered assets, backstopped by huge stimulus. It is unlikely to deploy until infection slows, whatever the US administration prefers. Get your market update from @DavidCottleFX here: https://t.co/OWOi2HxejD https://t.co/jvMXT7te1h
  • The bullish engulfing candle is one of the forex market’s most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/edEHzyoCJT https://t.co/vHPSW7Vm96
  • It was a big week for GBP/USD as Cable crushed shorts, rallying more than 1,000 pips off of last week’s lows. Get your $GBPUSD technical analysis from @JStanleyFX here: https://t.co/n6vYfe6Gfh https://t.co/zQq74Zzxsv
  • The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/ZNRBvNELeJ https://t.co/CKkWNMLkuw
  • The US Dollar could rise if key ISM, PMI and nonfarm payrolls data causes recession fears to swell and rekindles appetite for the haven-linked Greenback. Get your $USD market update from @ZabelinDimitri here: https://t.co/iTlnxWuSqn https://t.co/brEsDw2a5K
Silver steadily heading towards $25 / ounce

Silver steadily heading towards $25 / ounce

2014-01-24 20:56:00
Research, Research Team

Main Points

  • Silver seems set to print Higher Low at $19.61 before Higher High around $20.83.
  • White metal eyes $25 in long term.
  • Current price of metal is less than its mining cost that may expedite the ongoing bullish trend.
  • Price consolidation above $25 is less likely due to improving US economy

Silver is in correction phase before resuming further upside movement. The metal closed at $20.18 per ounce with a false hammer sign on daily chart.

At the moment in Asian session on Thursday Silver is being traded at $20.01 with immediate support seen around $19.87 (55 DMA) ahead of 19.61 (50% fib level of 30 December to 14 January rally).

silver_price_body_Picture_3.png, Silver steadily heading towards $25 / ounce

On upside, the metal may find hurdles at $20.58 (swing high of previous wave) and then $20.83 (50% fib level of 10th October to 31st December rally). 100 DMA and 200 DMA are also closed to $20.83, making it a triple confluence level as shown above.

Wave analysis shows that Silver is going to print a Higher Low (HL) on daily chart around $19.61 before a Higher High (HH) near $20.83 as charted below;

silver_price_body_Picture_2.png, Silver steadily heading towards $25 / ounce

In bigger scenario the mental has formed a classic double bottom pattern, have a look at following weekly chart;

silver_price_body_Picture_1.png, Silver steadily heading towards $25 / ounce

Neckline, the highest point between two lows, is at $25.08 that would be a decisive level for Silver. A tough fight between bulls and beers is expected around $25.00. If bulls lose, then we may see a long term reversal from $25 that may end below $18. Keeping in view the macroeconomic scenario, this could be a likely case. However, if Silver breaks the neckline, then $25.08 would act as a crucial support level and the target can be anywhere above $30 in that case.

Average mining cost of Silver was $21.39 at the end of third quarter last year, thus the current price is less than the production cost. Miners operating in loss may consider closing down production if price remains below the cost of mining for a longer period of time, this may consequently cause reduction in supply and ultimately the price will tend to rise. Therefore in short term we may see a surge up to $25 per ounce.

A rise above $25 however seems a less likely scenario since the US central bank is all set to end Quantitative Easing (QE) completely by the end of current year and labor sector is performing better than expectations. Chances are very high that we may see stronger dollar in coming months that would not be a good sign for silver as well as other commodities.

Similarly overall improvement in the US economy may keep investors away from precious metals (so called safe heavens). Some analysts however believe that increased growth in the US could increase the demand for Silver and in turn increase in metal’s price.

In conclusion I say that short term bias is very bullish for Silver however consolidation above $25 / ounce does not look a likely scenario.

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


News & Analysis at your fingertips.