Sep 17, 2020, 9:56:31 AM
XAG/USD: waiting for growth drivers
Current trend
The precious metals market continues to correct after significant gains and the leading assets are still consolidating in narrow ranges. In the current situation, even the slightest fundamental event can become a catalyst for further global growth.
Silver is trading near $27 an ounce and its volumes continue to decline. Macroeconomic statistics from China are improving, which creates a positive background for future growth in quotations: industrial production for August reached 5.6% against the background of forecasts of 5.1% and 4.8% for July. Thus, the main indicator of production levels has practically reached average values in recent years, which indicates the normalization of demand from the main importer.
Support and resistance
The asset moves within the global Triangle trend continuation pattern, being near the support line. The Alligator indicator is in a global buying state, and the EMA fluctuation range is narrowing moderately. The histogram of the AO oscillator is above the zero line in the buy zone but has practically reached the transition zone, which is quite expected in the case of falling trading activity.
Resistance levels: 27.50, 29.85.
Support levels: 26.12, 24.30.
Trading tips
After growth or consolidation above the level of 27.50, buy positions with the target at 29.85 will be relevant. Stop loss is 27.00.
After decline or consolidation below the local minimum at 26.12, it is relevant to open sell positions with the target at 24.30 and stop loss 26.50.
Implementation period: 7 days or more.
Scenario
-
Timeframe
Weekly
-
Recommendation
BUY STOP
-
Entry Point
27.50
-
Take Profit
29.85
-
Stop Loss
27.00
-
Key Levels
24.30, 26.12, 27.50, 29.85
Alternative scenario
-
Timeframe
Weekly
-
Recommendation
SELL STOP
-
Entry Point
26.12
-
Take Profit
24.30
-
Stop Loss
26.50
-
Key Levels
24.30, 26.12, 27.50, 29.85
