Morning Market Update – XAG/USD

Silver is in recovery mode for the day after broader bears showed signs of stall ahead of key supports at 16.59 Fresh recovery attempts are under way after rally and showed strong rejection at 16.59 zone. A sustained break here is needed to signal further recovery and expose key barriers which are expected to limit recovery attempts before broader bears resume. The metal is looking for the outcome of US jobs report, to generate stronger signal for near-term direction.

The bulls would regain control on a decisive move back above the pivot band at 16.59. However, this is a significant medium term barrier, and one which would complete a base pattern. The resistance also coincides with the decline and capped the upside. The recent candle was strengthening for the bulls with a rise at a high from 16.52. The momentum indicators specifically the Stochastics also approach key areas where they continue to hold and signal there may be a rise. The four hourly chart shows recent side way may be broke towards uptrend which has been broken now with the resistance of 16.59 now increasingly key near term. The four hourly stochastics consistently dropping back towards 20 would reflect a less bullish trend, and the four hourly dropping below neutral, but the 16.52 support is key. Below the 16.52 support puts 16.39 back in sight.

Silver price fluctuates at the intraday bullish channel’s support that appears on chart, keeping its stability above the most important support at 16.52, getting continuous positive support by the price action, while stochastic shows clear oversold signals.

Therefore, we will continue to suggest the bullish trend on the intraday and short term basis, Price increases very fast and should reach the pivot

line which its targets begin at 16.72 and extend to 16.79 which aligns withthe 50EMA and shall wait for price action surrounding area, noting that breaking 16.59 will push the price to test 50EMA areas before any new attempt to rise.

Expected trading range for today is between 16.52 support and 16.72 resistance.

Expected trend for today: Bullish

 
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