Silver Daily Chart
Markets

Silver Eyes Key Resistance- Weakness to Be Viewed as Opportunity

DailyFX.com -

Talking Points

  • Silver rally at risk near-term, broader outlook remains constructive
  • Updated targets & invalidation levels
  • Looking for more trade ideas? Review DailyFX's 2017 Trading Guides . Join Michael for Live Weekly Trading Webinar s on Mondays at 13:30GMT (8:30ET)

Silver Daily

Technical Outlook: Silver prices are responding to a key resistance confluence at 17.74/86 - this region is defined by the 38.2% retracement of the July decline & the 200-day moving average and converges on a pair of slope lines extending off the 2016 highs. Although the broader outlook remains constructive, the immediate advance is at risk below this threshold with support seen at the median-line extending off the November low / 100DMA around ~ 17.15/29 . A breach above this critical zone would likely see accelerated gains for the precious metal with such a scenario targeting confluence Fibonacci resistance at 18.33/39 .

Silver 240min

Notes: Prices have been trading within the confines of an ascending pitchfork formation extending off the December lows with silver struggling to mount the 50-line this week. Note that we've been marking ongoing divergence in momentum on this advance and further highlights the near-term risk for a pullback in price.

Interim support rests with the weekly / monthly opens at 17.49/53 backed closely by the median-line / 23.6% retracement at 17.33 . A break below this level would suggest a larger correction is underway targeting the weekly range lows at 17.03 & the lower parallel. Bottom line: the immediate threat is lower but ultimately weakness into the lower parallels should be viewed as a buying opportunity.

Looking for trade ideas? Review DailyFX's 2017 1 Q Projections

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere to be added to his email distribution list .

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Learn forex trading with a free practice account and trading charts from IG .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos