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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • The Hang Seng suffered its worst day since 2015 on Friday on China anti-sedition proposal. Get your market update from @FxWestwater here:https://t.co/CMQ1UTewiF https://t.co/FSeumhbZn3
  • Trump says he will announce action on China before the week is over - BBG
  • Alright, so a breakout higher then in my #WallStreet index despite negative RSI divergence. This may have opened the door to revisiting peaks in average US stock prices from early March. Rising support from mid-May seems to be guiding the index higher (pink line) https://t.co/2dbegpLr7v
  • BOC's Poloz: - Policy from fiscal and monetary side set base for economic recovery - Uncertainty around virus remains -BBG
  • 🇰🇷 Business Confidence Actual: 49 Previous: 52 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.69% 🇳🇿NZD: 1.60% 🇨🇦CAD: 1.50% 🇪🇺EUR: 0.78% 🇨🇭CHF: 0.65% 🇯🇵JPY: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/QHpL43u1ca
  • archive of today's webinar ready to go https://t.co/dCPU3X7BvY
  • Trump says virus vaccines and remedies are going to be here 'very shortly' - BBG
  • Heads Up:🇰🇷 Business Confidence due at 21:00 GMT (15min) Previous: 52 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 21:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-26
Silver Prices Give Back Gains, But The Trend Remains Bullish

Silver Prices Give Back Gains, But The Trend Remains Bullish

2016-03-09 11:56:00
Alejandro Zambrano, Market Analyst
Share:

Talking Points

  • Silver prices may try to carve out a low at current levels as the risk/reward ratio has tilted to be in favor of bullish traders.
  • The short-term trend is bullish above the March 3 low of $14.87.
  • U.S. Wholesale inventories are on tap in the U.S. session and may spark some volatility in silver prices.

Silver prices have now corrected 50% of their gains from the February 29 low of $14.6 and as the short-term trend defining level for most traders is the February 29 low of $14.6, or in my case the March 3 low of $14.87, the risk/reward ratio and trend is now favoring bullish positions.

In other words, it would not surprise me if silver prices try to carve out a low at current levels over the next few days. The exact range I am looking at is the $15.09 to $15.36 range, which are Fibonacci retracement levels. Please see the chart below.

Following a potential failure to bounce at current levels and a breach to the March 3 low of $14.87, there is a heightened risk that price may turn bearish and therefore trade lower. If this occurs, I would expect bullish traders to head for the exit.

U.S. Wholesale Inventories

In the afternoon, U.S. Wholesale inventories are expected to decline by -0.2% MoM and may move silver.

An interesting statistic published in the same report is that of Merchant Wholesale Sales, which measures sales and its YoY change to give us a hint of where the economy may be heading. The last reading showed sales contracting by 4.5% YoY and an even lower reading today may boost silver, as it suggests that the economy may be slowing further. A less severe contraction than 4.5% YoY may suggest an outcome to the opposite effect.

See the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

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

News & Analysis at your fingertips.