SILVER – Buy Near Range Support Area?

The US Dollar started this week on a positive note against most major currencies, and traded higher. Commodities

also felt the impact, as Oil traded down. Silver was down during the start of this week, and it looks it is trading in a

range on the higher timeframe chart.

 

If we look at the daily chart of Silver, then there is a range formed between $14.60 -$16.00, and it is very likely that

the price may test the range support area. So, we can consider buying in the near term, if the price moves down

and trades near the range support area.

 

There were a couple of events today, which impacted the market sentiment, including the RBA interest rate

decision, Euro Area Services PMI and Euro Area retail sales. The US Dollar was seen gaining bids after the release,

but there was a minor upside in Silver price. So, I think we need to wait for a dip in the price to enter a long trade.

Today, the US Services Purchasing Managers Index (PMI) will be released by Markit Economics, which may impact

the course of Silver and present us an opportunity.

 

I think we can drop onto the 4-hours chart of Silver and search for buying opportunities.

 

Technical Analysis

D1 – The daily chart of Silver, highlighted a range pattern, and the importance of the $14.60 support area.

 

 

 

Buy Entry:

H4 – As mentioned, we need to wait for the price to move down before considering a buy trade.

So, if the price moves down towards the support area of $14.60-58, creates a false break, closes back above the

support area and forms a bullish candle, then we can enter a buy trade.

 

 

 

Target 1: $15.80

Target 2: $16.60

Stop Loss: $14.10

 

Fundamentals events and Economic news to watch out

As mentioned there were a couple of important economic releases lined up today. First, the RBA Interest Rate

Decision was announced by the Reserve Bank of Australia. As expected, there was no change in the interest rates

from 2%.

 

However, the European session saw a couple of major releases. First, the German Services PMI was published

released by the Markit Economics. The forecast was lined up for no change in the PMI from 55.5 in March 2016,

but the report pointed out that there was a minor decrease from 55.5 to 55.1.

 

Similarly, the Euro Zone PMI service, which represents the economic situation in the Euro Zone services sector was

reported. The forecast was again no change from 54.0, but there was a decline to 53.1 in March 2016.

 

The report pointed out that “The underlying dynamics of the latest survey were also less positive. Slower growth of

new orders at service providers offset a strengthening at manufacturers, while both sectors saw weaker rates of

job creation. Measured overall, employment rose at the slowest pace since last September“.

 

Overall, the Euro failed to catch bids after the release and was seen trading down against the US Dollar.

 

Let us wait and see how Silver moves during the upcoming sessions, and whether we get the levels we need to

enter a buy trade or not.

 

Good Luck with trading traders!