Morning Market Update – XAG/USD

Silver is in recovery mode for the day after bears showed signs of stall ahead of key supports at the 16.91 level. The pair after some fresh recovery attempts is underway and looks to rally showing a strong rejection at the zone.  The pair’s sustained break at the 17.00 level is needed to signal a further recovery and expose key barriers which are expected to limit recovery attempts before broader bulls resume. The metal is looking to generate a stronger signal for near-term direction.

The bulls would regain control of a decisive move back above the pivot band at the 17.00 level. However, this is a significant medium-term barrier which would complete a base pattern. The pair’s resistance also coincides with the decline and capped the upside. The recent candle was stronger for the bulls with a rise at a high from the 16.91 level as the momentum indicators specifically the stochastic also approach key areas where they continue to hold and signal there may be a rise. The four hourly chart shows recent decline may be completed and look towards an uptrend which has been broken now with the resistance of the 16.91 level increasingly near term. The four hourly consistently is rising back towards the 80 level and would reflect a strong bullish trend. The four hourly is dropping below neutral at the 16.91 support key level. The pair trading below the 16.91 support level puts 16.77 back in sight.

Silver price fluctuates at the intraday with bullish channel support that appears on the chart.  This keeps its stability above the most important support at the 16.91 level and gets a continuous positive support by the price action, while stochastic shows clear rising signals.

Therefore, we will continue to suggest the bullish trend on the intraday at the 50EMA. We shall wait for price action surrounding area, noting that pair has been testing the 50EMA areas before any new attempt to rise on short-term basis. The pair’s price increases very fast and reaches the pivot line which targets to begin at the 16.91 and extend to 17.00 levels. We shall wait for price action surrounding area, noting that breaking these levels will push the price to test the 17.08 areas before any new attempt to raise.

The pair’s expected trading range for today is between the 16.91 support and 17.00 resistance levels.

Expected trend for today: Bullish
For more detailed analysis from the author, please visit NoaFX.