Potential Bullish Breakout For Silver

  • 9 Oct 2019



The USD/JPY pair is tracking the descending trendline downwards as bearish sentiment continues despite some bullish rebounds from this key support area. Momentum indicators have a sharp downward trajectory, with MACD approaching the zero line and RSI moving into the bearish channel.








The Eurodollar continues to languish around the 1.096 price line after rejecting the descending trendline. A series of small-bodied candles in recent trading indicate that neither buyers nor sellers have the conviction to drive price action. Momentum indicators have mild upward trajectories indicating yet both remain in bearish territory.  






The GBP/USD pair is heading towards the 1.216 support level after a strong bearish move to break the 1.228 support level. The long-term direction of price action is bearish. Momentum indicators are bearish with MACD breaking the zero line and RSI entering into the sell channel. 






The USD/CHF pair is continuing to test the 0.993 support level once again as price action pulls back mid-rally. A break of the support level will likely take price action back towards the ascending trendline which is set at the 0.987 price level currently. Momentum indicators are pulling back from bullish territory.







The USD/CAD pair has undergone a bullish breakout and is now stuck at the 1.333 price level which, as on previous occasions, has resulted in a pullback in price action. The pull back generally goes no further than the 1.328 support level. Momentum indicators have moved into bullish territory. 






Silver has broken the 17.42 resistance area and is approaching the descending trendline at the 17.84 price level. A rebound has occurred on two previous occasions when price action hit the trendline. The metal remains in a symmetrical triangle pattern and is approaching the apex where a breakout is likely. Momentum indicators remain in neutral/bearish territory.







Gold continues to track the ascending trendline which has been acting as a support level with a price rebound from the 1485.27 price level. The 1523.89 price level is the next target. Momentum indicators are languishing in neutral territory. 







WTI price is now testing a key support area at $52 per barrel price area. Despite a spike lower towards the $50 per barrel range, price action settled around the 52.17 price level. The commodity is sensitive to geopolitical developments and hence volatility will likely continue. Momentum indicators have bearish trajectories, with further downside potential.





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