As we are into the last trading day of this week, I do not expect any notable action in the market and will not force things and ruin the profits made this week. If you follow my Daily Markets Forecast then you know that we have made some nice profits on some pairs like AUDUSD and AUDNZD this week.
However, we still have an interesting setup in SILVER, and we are looking to buy the dips. Both GOLD and SILVER are trading at several months’ lows so we are careful with any trade setup on both these commodities.
SILVER broke an important short term channel and traded higher, retested the channel and traded higher again. It stopped right at the duplication of the channel as you can see in the chart below. Now we have a Bullish convergence on 4H chart. Hence, every pullback lower can present us a buying opportunity.
We have a Bullish hidden divergence on 1H along with a trend line as plotted in a chart below. To enter a long SILVER trade from here we need a test of this trend line or may be some points lower around 19.90/80.
If we have a continuing/regular bullish divergence on 15M chart along with bullish hidden divergence on 1H chart, then we enter into the trade and buy. Stop should be below the last low or somewhere below 4H 20 MA (Moving average). Initial target would be the last high, which is around 20.30, and if you are looking for higher target, then we need a convincing break above 20.30/50 resistance area. If we break higher and settle above these levels, then out secondary target should be around 21.20.
We do not have any major fundamental releases today except one as mentioned yesterday i.e. Canadian Employment figures. So, keep an eye on the market and try not to catch the false breakout going into the weekend.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: USDJPY, EURAUD, AUDUSD, AUDNZD, DOW JONES, EURGBP, EURCAD and NZDUSD.
For more details: Vladimir’s Markets Forecast
Enjoy the weekend friends. Happy trading!
Vladimir
