Kay Van-Petersen
Kay Van-Petersen, macro strategist at Saxo Capital Markets in APAC, believes that we are in "a regime of US dollar weakness" and takes a deeper look at which currencies and commodities benefit from that environment.
Medium term
Trade view / 11 August 2016 at 10:02 GMT

Silver getting ready for the next push higher?

Technical Analyst / FuturesTechs
United Kingdom

Silver (Sep 16) has had a very good 2016 so far, and is set to break higher still in the coming weeks according to the chart.

We ended 2015 trading down at $13.60 which was an important area on the longer term charts, and then in April we broke above a downtrend line as per our weekly chart. Since then we've rallied to hit the $20 market recently, although the last month or so has seen a consolidation sideways between $19.25 and $20.85. 

If/when we break this recent sideways consolidation it should be to the upside, and price action this week is adding weight to this. On Wednesday we gapped higher, above Tuesday's $19.90 high, and since then this level has held as support on two tests. We can use this level to protect a stop on a long trade at current levels.

Management and risk description


Entry: Buy at market (currently 20.22)

Stop: On a close below 19.90.

Targets:  22.70 and 24.90.

Time horizon: 2 weeks to 2 months.

Chart 1: Daily showing the gap at 19.90
Silver Daily
Chart 2: Weekly showing the decent recovery so far in 2016, but also showing how far we've come down from that high back in 2011! 
Silver Weekly
— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more


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