After tagging 19.90, price retreated sharply. While this shows lack of bullish commitment it could also be an opportunity for buyers to scoop up silver at a lower price after a bullish breakout. As price approaches 19.50, and the 4H RSI approaches 40, we should start considering a buy.
Silver (XAG/USD) 4H Chart 8/28
Trade Assessment:
The 50-period SMA is at 19.50. If the price bottom is to stay, we should probably start seeing buyers here, down to the 19.40 area. Let's say we put in an entry at 19.50, we will have to put a stop-loss just below 19.30 ie. 19.20. This would be a stop-loss risk of 0.30. The bullish target could be the 20.15-20.20 area which contains a previous common high in early August, and the 200-period SMA in the 4H chart. This yields a potential gain of 0.65 to 0.70.
The rewrd to risk is thus somewhere between 2:1, 2.5:1.
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.