Silver Prices: Narrow Range Makes Trading A Breakout Enticing
- Price is trading in a narrow range making it interesting for short-term breakout traders
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Silver prices are trading in a narrow range, making the market somewhat more interesting for short-term traders. A break to today’s high of $14.63 may take price to $14.78 which is a 38.2% correction level on the decline from $16.33 to $12.82. In the case that $14.78 does not cap price, traders are expected to target the November 5 low of $14.92.
Bearish targets come into play if prices slip below the overnight low of $14.45. In this scenario a decline to resistance on November 26 at $14.32 is expected, with $14.22 acting as the second target in case of an extension.
There are no key data reports on tap in today’s session hence trading should be technical.
In the near future, I expect silver prices to be supported after a major reversal which occurred on Thursday last week though it’s important to note that this move and analysis is technical in nature and primarily due to the oversold condition of silver prices and the major short-covering in the EUR/USD. In terms of a longer outlook, I remain bearish on silver as I think that the buck will gain as the Fed raises interest rates throughout 2016. Please see Silver Price: A Medium-Term Low In Place
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.