Silver Soars Over the $19 per Ounce

EagleFX Team EagleFX

During the second trading session of the month, Silver (COMEX:SI) strikes the $19.165 per Ounce, the highest level since October 2016. During 2019, the precious metal gained 23.8% (YTD). The growing commercial tensions between the United States and China have been expanding the appetite for safe-haven assets. On a similar vein, Gold (COMEX:GC) advances 18.7% during this year.

Technical Overview

Silver, on its daily chart, shows a bullish five-wave sequence. The ascending cycle started on November 13, 2018; when the precious metal found support at $13.895 per Ounce. Currently, we could be facing the fifth wave of the bullish cycle.

Regarding the 4-hour chart, we observe an internal five-wave formation, from where the fifth wave of lesser degree could be ending soon. In consequence, the current movement corresponds to a fifth of a fifth wave.

As a complement to the previous figures, the Gold/Silver ratio daily chart presents a 5-3-5 corrective formation. In Elliott Wave' terms, the structure corresponds to a zig-zag pattern. Currently, the ratio tests a support zone at 80.81. The bounce of the ratio suggests that a potential retrace on Silver should happen soon.

From the latest Commitment of Traders (CoT) report, we observe an increment of 7.25% on long positions of institutional traders. On the bearish side, the CoT report informed that short positions were reduced by 12.92%. In summary, the institutional activity released last Friday shows that the bias remains bullish. However, we have to consider that they held 70.34% of the long positions, which suggests that institutions should take their profits soon.

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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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