Silver Price: A Range Traders Paradise
- Silver maintains its $14.40 to $13.61 range, and it’s likely that range trading will dominate. Those keen on following trends will therefore probably be better off seeking out action elsewhere.
Losing Money Trading? This Might Be Why
Silver failed to capitalise on yesterday’s dollar strength and for price momentum to pick up a break to the December low of $13.61 is needed. Until this happens, silver is dead in the water.
A break to the December low of $13.61 will probably encourage more sellers to step in, as a break to this level opens the door for a decline to the August 19 low of $13.48. A bearish breakout is also in line with the idea that the USD will gain in 2016 as the Fed hikes rates.
If a break does not occur, then silver prices may reach $14.25 as investors range trade the $14.40 to $13.61 range. However, as long as price is capped at $14.40, I will remain bearish in line with the longer term trend.
There are no interesting data reports on tap until this evening when the Fed publishes its latest Beige Book. See our economic calendar.
Silver Prices | FXCM: XAG/USD
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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.