Friday, August 26, 2016

Has Silver Bottomed Out?

Silver has been trading to the downside for the past couple of weeks. The metal went from a multi-year high of 20.80 to a low of 18.50. It is not certain that the down trend will continue but we might expect two support zones to play a role soon. The first support is seen at 18.03 which is the prior pivot point and the second support zone is seen at 17.20 where price meets the long term support zone for the uptrend.

We might expect volatility in today's session as we have US GDP scheduled for later and also Fed Chair Janet Yellen to speak at Jackson Hole Policy Symposium. Rumor has it, Fed Chair Yellen will fuel rate hike bets in this appearance and if this does happen, the US dollar may rise substantially and depreciate Silver price.

Chart: XAG/USD D1


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