XAGUSD: Silver Prices Uptrend Remains Intact, But Watch This Level

Published by

Written By: Alejandro Zambrano

Sep 24, 2019, 16:03 BST 16:03

silver price

Summary:

Today, silver prices (XAGUSD), slid as the US trading session started on what appears to be profit-taking, however, the trend remains upwards.

Today, silver prices (XAGUSD), slid as the US trading session started on what appears to be profit-taking following the last few day’s price surge. After reaching a new yearly high of $19.64 on September 4, silver price declined by 11.28 percent to reach a low of $17.39 on September 13. Prices have since then turned the corner and earlier today silver prices were up by 7.87% from the September 13 low.

As the trend is now short-term upwards above the September 13 low at $17.39, traders will probably try to buy dips in the price, keeping it supported. I suspect support in the silver might kick in around the $18.04 level as it is the 50% correction level of the rally from 17.38 low to this week’s high of $18.74. If the price indeed turns higher from support, then traders will probably target this week’s high of 18.74, followed by the September high at $19.64. The long-term trend is also bullish which should further support the price. However, on the price trading below the September 13 low of $17.38, the short-term trend would no longer be upwards, and traders will probably target the next support level, the August 19 low of $16.83.

For our outlook on gold prices read: XAUUSD: Gold Prices Consolidate Above $1500

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.