Silver Prices: Trapped In A Familiar Range
Silver prices are trapped in their familiar $13.61 to $14.40 range, and there is little reason to trade unless specifically targeting this range.
With this in mind, we reiterate yesterday’s outlook that range traders would use a rally to $14.25 to book profits on long positions bought near the $13.75 support level. Some range traders may even short near $14.25 with stops above $14.40. Caution is however warranted, as currently the price of gold suggests that silver should be trading at $14.60. In other words, silver may break its range. This estimation is based on a regression analysis using the last 6 months of trading data.
On a break to $14.40, prices may reach the December 7 2015 high of $14.62.
Momentum traders will wait for a break to the $13.61 to $14.40 range.
In the afternoon U.S. Jobless Claims and Philadelphia Fed Index are on tap. Will these move silver prices? I doubt it.
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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.