FXOpen
Silver extended upside movement on Monday, increasing the price of white metal to more than 16.80 an ounce as bulls gain strength. The technical bias remains extremely bearish because of a lower low and lower high in the recent downside move.
Technical Analysis
As of this writing, the precious metal is being traded near $16.83 an ounce. A hurdle can be seen around $17.00-$17.09 an ounce, the confluence of psychological number as well as a major horizontal resistance area as demonstrated in the given below daily chart. A break and daily closing above the $17.09 resistance shall incite renewed buying interest, validating a move towards $18.50 resistance zone.
On the downside, the precious metal is expected to find a support near $16.44, the low of today ahead of $16.16, the swing low of the recent downside move and then $16.00, the psychological number. The technical bias shall remain bearish as long as the $18.89 resistance area is intact.
US Goods Trade Balance
The US seasonally-adjusted goods trade deficit for October increased to $62.0bn from $56.5bn in September and was above expectations of a $59.2bn deficit for the month. The October deficit was also slightly above the $61.6bn deficit seen in October 2015. Exports declined 2.7% on the month with a 0.4% annual decline, which will cause some concerns over underling trends, although monthly data will inevitably be volatile. Overall imports increased 1.1% on the month and were unchanged from the previous year. There was a 1.9% increase in capital goods imports for the month, while auto shipments declined 2.1%.
Trade Idea
Considering the overall technical and fundamental outlook, selling the precious metal near $17.09 an ounce appears to be a good strategy if we get a valid bearish reversal candle near that level.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
XBR/USD Chart Analysis: Price Rebounds from a Seven-Week Low
On 1 December, we outlined a descending channel on the XBR/USD chart and noted that the bearish trend was driven by fading geopolitical risks. Indeed, hopes for an end to the war in Ukraine—along with the possibility of
Silver Price Hits Historic Record Around $64
On 27 November, we suggested that silver was preparing to challenge its all-time high. Since then (marked with the orange arrow), XAG/USD has risen by roughly 18%, breaking above the psychological $60-per-ounce threshold for the first time in history.