Will the Price of Silver Extend Its Gains?
- Silver remains bullish above last week’s low of $15.21.
- On a break to last week’s high of $16.16, the price may reach the October 15 2015 high of $16.24.
- Markit U.S. manufacturing PMI is seen at 51.9 from 51.3 according to a Bloomberg news survey.
The multi-day trend for silver prices remains bullish above last week’s low of $15.21 and prices may reach last week’s high of $16.16, followed by the October 15, 2015 high of $16.24.
Traders who are not long and would like to take advantage of the trend might wait for a pullback to the $15.79 - $15.57 range. Here price would be neutral in relation to the bullish trend and may encourage traders to turn bullish. The range is derived using Fibonacci retracement and a mixture of last week’s low of $15.21 and last week’s high of $16.16. Both are used as points of reference here.
To date, price reached this range in yesterday’s session, but we can’t rule out another test of the range.
On a break to last week’s high of $16.16, we may see a test to the October 15, 2015 high of $16.24, followed by the June 18, 2015 high of $16.49.
For the trend to turn bearish, price would need to slide below and break last week’s low of $15.21.
Markit U.S. manufacturing PMI is on deck today and is seen at 51.9 from 51.3 according to a Bloomberg news survey. A very strong beat to the expected figure may strengthen the Dollar and soften silver, with the opposite also being true.
Download the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold
Silver Price | 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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