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
EUR/USD
Mixed
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
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.35% Gold: -1.88% Silver: -5.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/dpJL9GNED0
  • Gold prices have been showing bearish tendencies for the better part of the past seven weeks, coming fresh on the heels of all-time-highs that printed in early-August. Get your $XAUUSD market update from @JStanleyFX here:https://t.co/ucxIo1pFfg https://t.co/aHUhmb8YVK
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.20% 🇪🇺EUR: -0.26% 🇨🇭CHF: -0.35% 🇨🇦CAD: -0.44% 🇳🇿NZD: -0.99% 🇦🇺AUD: -1.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3KGtHyMLEM
  • Fed's Rosengren says he is less optimistic against other forecasters in Fed - BBG
  • Fed Chair Powell: - Studying what caused dysfunction in Treasury market back in March - DJ via BBG
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: -0.25% Germany 30: -0.33% FTSE 100: -0.36% Wall Street: -0.48% US 500: -0.84% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0ZaXkoSq3u
  • $Gold down to that next support zone, closer and closer to fresh two-month-lows https://t.co/0ecO64jQQc https://t.co/H3eF5Wyi8P
  • Hey traders! Get your Wednesday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/qJimv2rgqB
  • US Dollar Extends Rally as Global PMI Data Fans Volatility Full Analysis via @DailyFX: https://www.dailyfx.com/forex/market_alert/2020/09/23/us-dollar-extends-rally-as-global-pmi-data-fans-volatility.html $USD $DXY $EURUSD #FX #Forex #Trading https://t.co/5qBKKha4ud
  • US 154-Day Bills Draw 0.100% Primary Dealers Awarded: 63.6% Indirect Bidders Accepted: 32.3% Direct Bidders Accepted: 4.1% B/C Ratio: 3.29
Silver Prices Remain Bearish Below $14.62

Silver Prices Remain Bearish Below $14.62

2015-12-22 14:24:00
Alejandro Zambrano, Market Analyst
Share:

Talking Points

  • Silver remains out of favour and capped by the December high of $14.62.
  • Silver to S&P 500 ratio points towards further Silver price losses
  • Data on tap in today’s session is U.S. house price index (0.5% MoM expected), Existing home sales (-0.2% MoM expected), and Richmond Fed Mfg. Index (-1 expected).

Silver remains out of favour and capped by the December high of $14.62. A break to this level may trigger a push towards to $15 and $15.50. This could be scalped on a break to $14.62, but the base case is for the medium trend to remain bearish and capped by $14.62. As long as $14.62 is capping price I am expecting a decline to $13.59 and $13.17.

Most traders are correct about the market direction. Yet, they still don’t generate positive returns. This Traits of Successful Traders Guide explains why this is the case

Please add a description for the image.

The reason for holding this view is the long-term bullish trend of the US Dollar and the preference of investors to hold equities over the precious metal. This can be seen in the Silver to S&P 500 ratio (see below).

At the lows of 2011 one contract of the S&P 500 was worth 25.59Troy Ounce of silver. While today an investor would need 141 Troy Ounces to buy the same S&P 500 contract. This highlights that the S&P 500 has been gaining in value while silver prices have dropped. It also points out that the market is not afraid of inflation or geopolitical worries, which are two reasons for traders to buy silver. In regards to the former, the current decline of Crude oil prices will probably ensure that the world economy experiences low inflation in the next 2 years. Geopolitical risks have declined as the western super-powers are now working closer with the Russians to combat the IS.

Data on tap in today’s session is U.S. house price index (0.5% MoM expected), Existing home sales (-0.2% MoM expected), and Richmond Fed Manu. Index (-1 expected). I don’t expect these indicator to change the overall trend of Silver prices as none are key for the Federal Reserve. For a complete list of economic indicators please see our economic calendar.

Silver To S&P 500 Ratio

Silver Prices Remain Bearish Below $14.62

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

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

Learn more about trading and join a London Seminar

To be added to Alejandro’s e-mail distribution list, please fill out this form

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

DISCLOSURES