The price of Silver inched higher on Monday, increasing the white metal to more than $14.75 an ounce ahead of some key economic releases. The technical bias remains bearish due to a Lower Low and Lower High in the recent wave on daily chart.
Technical Analysis
As of this writing, the precious metal is being traded around $14.75 an ounce. A support may be noted around $14.53, the intraday low of Friday ahead of $14.36, the swing low of the last downside wave as demonstrated in the following daily chart.
On the upside, the pair is expected to face a hurdle near $15.16, the 23.6% fib level ahead of $15.66, the confluence of 38.2% fib level as well as major horizontal resistance and then $16.44, the swing high of the last major upside move. The technical bias will remain bearish as long as the $16.44 resistance area is intact.
ISM Manufacturing PMI
The Institute of Supply Management is due to release the Manufacturing Purchasing Managers Index (PMI) report today during the early New York session. According to the average forecast of different economists, the manufacturing PMI registered 53.5 points reading in July as compared to the same reading in the month before. Generally speaking a higher reading above 50 shows expansion in the manufacturing activity thus a better than expected actual outcome will be seen as bearish for the price of bullion and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying the precious metal around the current levels appears to be a good strategy in short to medium term if we get a bullish pin bar or bullish engulfing candle. The trade should however be stopped out on a daily closing below the $14.36 support area.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
