Good morning Forex Kings,
This morning we are looking at silver as it is currently lagging behind the uptick in gold prices.
Over night another 1032 cases of the Corona-virus have been reported in China, as of writing this report the total number has risen to 7811.
What does this mean for the market?
Safe haven demand is going to increase, this will include gold and the JPY, additionally silver could also follow gold prices.
Looking through the technical analysis, silver is extremely far away from its record highs back in 2011, whereas gold is getting fairly close to its record highs. This suggests investors may turn to silver as they potential gain on the upside could be significantly greater during the long hold.
GOLD Technical Analysis
Gold has been a dream to trade through the pennant formations. We will be watching the current pennant formation very closely.
Silver has also created a pennant formation however it is still trading at the bottom area giving a better entry point.
Trade Set Up 1: BUY SILVER (XAGUSD) (market order)- Stop loss 16.50 and take profit set at 19.50
Stop loss 100 PIPS
Take profit 200 PIPs
Please check the SPECIFICATION/ DEATILS of silver.
1 contract = $50 per pip
100 pip stop loss would be $5000 risk.
You will need to bring your position size down to fit your own risk management.
Silver PIPS = 00.01
Trade Set Up 2: BUY LIMIT – Entry price 17.20, stop loss 16.50 and take profit 19.50
Stop loss: 70 pips
Take profit: 230 PIPS