Silver costs are down greater than 10% off the September highs with XAG/USD buying and selling in a variety slightly below a essential resistance degree we’ve been monitoring for months now. These are the up to date targets and invalidation ranges that matter on the Silver weekly worth chart. Overview my newestWeekly Technique Webinar for an in-depth breakdown of this setup and extra.
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Silver Worth Chart – XAG/USD Weekly
Chart Ready by Michael Boutros, Technical Strategist; Silver on Tradingview
Notes: In my final Silver Worth Outlook we famous that XAG/USD was “testing uptrend resistance round 18.37/65 – a breach / shut above this area is required to maintain the broader long-bias viable… search for proof of worth exhaustion up right here.” Worth registered a excessive at 19.64 within the following days however was unable to mark a weekly shut above the 18.37/65 resistance zone- a area outlined by the 61.eight% retracement of the 2016 decline and the 2017 swing-high.
The technicals are messy right here however for now, the main target is on two important zones of help at 16.97 and extra importantly 16.33/51 – each ranges of curiosity for potential exhaustion / long-entries IF reached. A topside breach / shut above 18.65 is required to mark resumption with such a state of affairs once more focusing on the higher parallel / 78.6% retracement at 19.58.
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Backside line:Silver stays in correction off uptrend resistance and whereas the broader focus is greater, we’re searching for one other low right here earlier than resumption. From at buying and selling standpoint, the main target is on a potential exhaustion on a transfer in direction of the decrease parallels / forward of 16.33 for entries. In the end a topside breach / shut above 18.64 is required to gasoline the subsequent leg greater.
Silver Dealer Sentiment – XAG/USD Worth Chart
A abstract of IG Consumer Sentiment reveals merchants are net-long Silver – the ratio stands at +5.79 (85.three% of merchants are lengthy) – bearish studyingLengthy positions arezero.5% greater than yesterday and 6.eight% decrease from final weekQuick positions are 9.7% greater than yesterday and 26.1% greater from final weekWe sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Spot Silver costs might proceed to fall. But merchants are much less net-long than yesterday and in contrast with final week and the recent modifications in sentiment warn that the present Spot Silver worth pattern might quickly reverse greater regardless of the actual fact merchants stay net-long.
See how shifts in Silver retail positioning are impacting trend- Study extra about sentiment!
Earlier Weekly Technical Charts
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— Written by Michael Boutros, Technical Foreign money Strategist with DailyFX
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