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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Silver: Profit Taking Ahead of NFP Seems Likely

Silver: Profit Taking Ahead of NFP Seems Likely

Alejandro Zambrano, Market Analyst

Silver prices have now reached our $14.90 target (mentioned here earlier this week).

With the NFP report on tap, I see it as fairly likely that short-term traders will book profits ahead of the report release as even a small beat to the 190k projected outcome (Bloomberg survey), may trigger a decline to $14.50. Such a decline would not end the downward trend and as such traders may opt to enter long on a pullback to the regions of $14.50. This scenario will hold provided the NFP outcome does not grossly beat its estimate. If it does, bullish traders will probably make a dive for the exit. The trend turns bearish on a break to $14.18.

On the other hand, if the NFP forecast was to fail to meet expectations, a break to the current high of 14.95 is likely, and in this scenario silver prices may reach $15.30 over the next week. However, with risk/reward ratio not favourable for new long positions after this week’s strong gains, caution is warranted.

As always, we take a look at gold prices, and they suggest silver should be trading at $15.47 as long as gold remains at or above $1158.

Boost your trading skills and pick up one of our 16 different Trading Guides

Silver Prices | FXCM: XAG/USD

Please add a description for the image.

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

Struggling with Trading? Join a London Seminar

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

DISCLOSURES