Thursday, 7 July 2016

Silver in bullish intraday bias

Today XAG/USD was trading higher and posted an intraday high at $20.34 and low at $19.62. The intraday sentiment remained bullish, confirmed my the  20-day, 30-day and 55-day EMA, as shown on the daily chart.
MACD and RSI are showing overbought market, so as expected a slight downward correction was seen slightly below the daily support zone at $19.834.
Last week we witnessed an intermediate-term higher trending facing to the long-term resistance zone. Since then silver is hovering around $19 level. Meanwhile the highs marked on 1st and 4th of July and the powerful move in the short-term left buyers exhausted. In case the market skip some additional selling, a short consolidation period is about to push the price towards $21 level. One thing is sure – the recent highs are yet to be digested with a possible extended pull back period. 
Currently we should pay particular attention to the behaviour against Monday’s highs. If trading higher, the resistance at $21.56 (July 2014 high) should be set on focus. On the other side, closing below $19.83 will drag silver towards supports at $19 zone or even $18.50. 



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