FXEMPIRE
All
Ad
Advertisement
Advertisement
Kenny Fisher
Add to Bookmarks

Silver prices are trading sideways in Thursday trade. Currently, silver is trading at $17.88, up $0.04 or 0.20% on the day.

Silver Punches Above 18.00, Hits Wall

Silver recorded solid gains last week, climbing 3.3 percent. The upward swing has continued this week, with gains of close to one percent. For the month of December, silver was up an impressive 4.8 percent.

Advertisement
Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

So what’s wrong with this picture?

Although silver posted strong gains in late December, it is clearly having trouble making headway above the 18.00 level, which has psychological significance. Silver pushed as high as 18.14 on December 31st but was unable to consolidate these gains, as the metal retracted and ended the year below at 17.82. Will silver make another attempt to break the resilient level? Or will investors look elsewhere and send silver prices lower?

With markets still marked by thin volumes this week, traders should act with caution. The current environment is more favorable for short-term traders, who are comfortable with entering and exiting the market quickly.

Advertisement

Ahead – Manufacturing PMI, FOMC Minutes

The New Year’s holiday has caused a shift in the calendar, so Friday will be somewhat busy, although trade volume is likely to be light. Manufacturing PMI is expected to accelerate, with an estimate of 49.0 December, up from 48.1 pts in November. Still, the manufacturing sector has looked weak, as the PMI has not pointed to expansion since July. We’ll get a look at the FOMC minutes from the December policy meeting, when rate-setters stayed on the sidelines and maintained the benchmark rate.

Silver Technical Analysis

The recent uptrend was followed by a shooting star, which could signal a reversal. On the downside, we find support at 17.50, followed closely by the 50-EMA line at 17.30. On the upside, there is resistance at the round number of 18.00, followed by resistance at 18.60.

XAG/USD 1-Day Chart
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker