Silver Prices: Waiting For The Big Break
- Price remains trendless and hardly reacts to developments in other markets
- I’d wait for a break to the December low of $13.61
Silver prices (FXCM: XAG/USD) remain range bound making it hard to profit as the market is not moving. While volatility is low today, when price finally breaksthe $13.61 – $14.40 range it will be very interesting to trade silver.
Range-traders are expected to enter long positions near $13.75 with stops below the December low of $13.61. Take profit orders will most likely be placed in the vicinity of $14.25 (near upper end of current range).
If and when and price reaches $14.25, the same traders will probably short with stop loss orders above the December 28 high of $14.40.
Longer-Term Traders Wait
On the other hand, macro traders and trend-followers will not buy silver near the lower end of the recent range. Instead, they will wait for a break to the December low of $13.61 given that the longer-term trend is bearish. The macro-outlook is also bearish as the Fed projects a raise to current rates in 2016, which should underpin the Dollar.
With a public holiday in the U.S., there are no major data is on tap today. See our economic calendar for events on tap in the next few days.
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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.