Silver Could Visit Fresh Lows

EagleFX Team EagleFX

Silver, in its hourly chart, develops a consolidation formation that could break down the local bottom. These are our arguments for keeping a bearish view on the precious metal.

1. Large traders continue being bullish in the stock market, mainly driven by the expectation of new record highs. Another factor that could drive the bullish sentiment is the probability of a "phase one" deal completion between the U.S and China, which could contribute drive to reduce the interest in risk-off assets as Silver or Gold.

2. A sell position will trigger if the price breaks and closes below $16.82 per ounce. In our conservative scenario, the take-profit level is placed at $16.73 per ounce.

3. If Silver extends its falls, it could drop to $16.63 and even up to $16.51 per ounce.

4. The bearish scenario will be invalid if the Silver scale and close above $16.97. A second scenario under which the selling position would be invalid is if the price makes a false breakdown in the proposed entry-level at $16.82 per ounce.

5. The risk could be driven by the end of the bullish sentiment in the stock market, which could lead to an active movement of interest towards risk-off assets such as Gold and Silver.

Trading Plan Summary

Entry Level: $16.82.
Protective Stop: $16.97.
1st Profit Target: $16.73.
2nd Profit Target: $16.63.
3rd Profit Target: $16.51.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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