Buying the Retrace Down in Silver XAG - Forex News by FX Leaders
The retrace in Silver seems complete now

Buying the Retrace Down in Silver XAG

Posted Wednesday, September 8, 2021 by
Skerdian Meta • 2 min read

Safe havens, such as gold and silver, were in a bearish trend during most of the summer, with the global economy finding itself in a period of expansion and positive sentiment. Silver fell from $28.50s to $22.50s, but the sentiment reversed toward the end of August, and precious metals have been bullish since then.

During the decline, moving averages were acting as resistance, taking turns to push the price lower. When the downtrend was slower, the larger moving averages took over, and when the decline picked up pace, the smaller moving averages, such as the 20 SMA (gray) and the 50 SMA (yellow), were pushing silver lower.

Now, all the moving averages have been broken, which is a clear sign that the trend has changed in silver. GOLD has climbed around $150 during this time, so the buying momentum has been strong. SILVER has also been moving higher, and moving averages have turned from resistance into support, which is another sign that the trend has turned bullish, and buyers are in control.

Silver Live Chart

[[XAG-graph]]

The uptrend has unfolded in waves, with an occasional retrace lower, and today, we are in one of these pullbacks. Yesterday we saw a pullback in safe havens, as the USD gained some momentum, and silver retraced lower. But, the 50 SMA (yellow) keeps holding as support on the H4 chart, so we decided to open a buy forex signal here.

We bought XAG/USD a while ago, against this moving average, since the pullback seemed complete. The stochastic indicator is oversold now, while the moving averages are providing support on this time-frame. So, we’re long on silver, and waiting for the bounce to come and the bullish trend to resume. The Indian Rupee has weakened, which is helping silver, while the economic data from China was sort of positive, so the bounce should come soon.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments