Morning Market Update – XAG/USD

The intraday bias on Silver remains on the upside for the moment. Current rise from 17.012 is still in progress for 17.182 high. At this point, there is no clear sign of uptrend resumption yet. Hence, we’ll be cautious on strong resistance from 17.182 to limit upside and bring another fall. On the downside, break of the 16.950 minor support will turn the intraday bias neutral first.

In the bigger picture, price actions from 17.012 are viewed as a medium term corrective pattern. It’s uncertain whether it is finished yet. But in case of another fall, we’d expect strong support from 16.950 cluster support to contain downside and bring rebound. Whole up trend from 17.012 is expected to resume after consolidation from 16.848 completes.

The pair has broken out once more. With such strong momentum that continues to build, it had only seemed like a matter of time, price action has helped to drive the break above 17.182. This had been the broad projection target from the old range breakout, so the target should be achieved. This now means that silver is trading within the ranging market and we are looking for a retest of the resistance yet again, but also on the longer term charts is now testing the top of the pivot trading range between 16.950 and 16.848. As yet there seems to be little reason not to believe that the silver can continue to push higher, so buying into the intraday dips remains viable. The daily momentum indicators are all strongly configured. The four hourly chart shows support at 16.950.

Silver price keeps fluctuating within tight track settling around the main bullish trend, while the EMA50 provides continuous positive support to the price, to keep the bullish trend scenario valid and active in the upcoming period, supported by stochastic move in the rising areas to get rid of its negative momentum gradually. Therefore, we are sure that the pair confirms the positive trading on the intraday and short term basis conditioned by holding above 16.950, reminding you that our positive targets begin at 17.189 and extend to 17.274.

Expected trading range for today is between 16.950 support and 17.274 resistance.

Expected trend for today: Bullish
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