Morning Market Update – XAG/USD

Silver is pushing higher after the bounce still bouncing from four hourly support given at 16.60. Key resistance is given at a distance at 16.80. The commodity is currently holding above the 16 mark.

In the long-term, the cross indicates that further upsides are very likely. Strong support can be found at 16.60.

Silver rally is still in progress and edges higher to 16.60. Intraday bias remains on the upside at this point. Firm break of resistance has confirmed resumption of whole rebound from bottom. In such case, pair would target projection of 16.80 next. On the downside, below minor support will turn intraday bias neutral first. But near term outlook will stay cautiously bullish as long as 16.60 support holds.

In the bigger picture, current development suggests that rebound from support area is developing into a medium term rise. With confirmation of continuing trend we’ll continue to treat such rebound as a corrective pattern.

But in any case, further rise is now expected with price bouncing of the 50EMA. The silver recovery continues to make ground amidst the renewed dollar weakness. The uptrend has been decisively broken resistance and confirmed now, whilst momentum indicators are all now in solid recovery mode. The Stochastic are tracking higher at 76.0 level. The market has also decisively broken the initial resistance which now means that a new trend is in formation. The next test is at 16.80. This is the old pivot level in place which has seen a series of turning points and numerous consolidations.

Furthermore, it would be a considerable scalp for the bulls to close consistently above 16.80, which would subsequently open the next pivot around 16.90. The four-hourly chart shows strong near term momentum, a sequence of highs and the old resistance now becoming supportive.

Silver price did show a strong move yesterday, fluctuating within the tight track confined between the key levels represented by 16.34 support and 16.60 resistance. Breaching one of the resistance levels signals an upside trend clearly, and continues with our bullish outlook until now.

We remind you that breaching above the mentioned resistance will push the price to extend its gains on the short term basis and head towards 16.80 as a next main station, while breaking 16.80 will push the price to test the key resistance 16.90 before any new attempt to rise.

Expected trading range for today is between 16.60 support and 16.90 resistance.

Expected trend for today: Bullish
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