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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • PBoC sets Yuan reference rate at 6.6725 against the US Dollar - BBG
  • #Silver retracing its losses earlier in the session as price carves out a Bear Flag pattern With resistance at $25 holding firm, further losses appear in the offing A daily close below the 21-DMA (24.20) may open the door for a retest of 61.8% Fib support (21.74) $SLVR $SLV https://t.co/rCl3Ms3FB3
  • The Nasdaq 100 index looks set to pull back amid bearish momentum in the near term. The 50-Day Simple Moving Average (SMA) line may serve as an immediate support. Get your #equities update from @margaretyjy here: https://t.co/5Axsg6gAdd https://t.co/rToHnPLSeS
  • $GBPUSD the outlier early in the session, up marginally as UK-EU Brexit negotiators extend talks until October 28 https://t.co/ey92YW4RJw
  • #CrudeOil down 1.95% on the back of tightening #COVID19 restrictions in several European nations $EURUSD nudging marginally lower https://t.co/PUWTfKl08f https://t.co/XuyQOzV6sj
  • Market Snapshot Broad risk-off tilt to kick-off APAC trade #Gold and #CrudeOil prices plunging lower alongside the risk-sensitive $AUDUSD Haven-linked $JPY and $USD moving higher against their major counterparts
  • Wall Street Futures Update: Dow Jones (-0.504%) S&P 500 (-0.536%) Nasdaq 100 (-0.484%) [delayed] -BBG
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/zSCf8azESa
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/tJWOXZCoBw
Silver Prices: Much to Be Learned in a Retracement

Silver Prices: Much to Be Learned in a Retracement

2016-10-07 11:41:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Silver fails to bounce of confluence of support, which led to…
  • A smaller level of support at 17.12, which is holding at this time
  • Silver is viewed bearish on a bounce into the 17.70s, a period of congestion could develop

To receive Paul's analysis directly via email, please sign up here.

On Wednesday, we noted a confluence of support in the upper 17s which consisted of the trend-line running up from January, horizontal peaks running back to May 2015, as well as a lower parallel extending back to early July.

This is what we had to say regarding support in our last post:“Solid confluence doesn’t mean it will hold, though, but does present another important inflection point. The move looks overdone in the short-run, but the velocity at which the break happened and the resulting big, bad daily bar created suggests support may not hold for long.”

And so it was, support only held momentarily. Wednesday, silver attempted to bounce, but buyers were unsuccessful in their efforts. The feeble bounce led to a key break of support into our next noted level of support around 17.12, tagging it almost to the exact penny (yesterday’s low was 17.118).

Today, prior to the monthly US jobs report, we are seeing an attempt to bounce from support, but expectations of a bounce to develop far beyond the upper 17s are low without first seeing another attempt by the market to push it lower. Should a bounce develop into prior support turned resistance and silver loses momentum, traders may look to use this as an opportunity for entering short.

A period of consolidation (choppy trading) is a scenario we must consider given the precipitous drop experienced the last couple of weeks. If silver fails to carve out anything resembling a flush-out low and moves sideways for a period of time, it would be a sign buyers are unwilling to step in at these prices and signal that the metal is likely resting for another shove lower. Trade below the 17.12 support level clears a path towards an inflection zone surrounding 16.

Silver: Daily

Silver Prices: Much to Be Learned in a Retracement

Created in Tradingview

For now, we will wait see how silver responds to the current decline, as chasing after a sharp decline into support is more often than not a losing proposition. In these situations, it’s best to wait and see how the market responds following such a drastic move. As ‘they’ say, “there is much to be learned in the retracement.”

Heads up: At 12:30 GMT, the US jobs report is due out. The NFP figure for September is expected at 172k while the unemployment rate remains even at 4.9% and an uptick in average hourly earnings to 2.6% YoY from 2.4% YoY.

Check out our Q4 forecasts as well as other trading guides aimed at traders of all experience levels.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly to your inbox, please sign up here.

You can follow Paul on Twitter @PaulRobinsonFX.

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

DISCLOSURES