Good afternoon Forex Kings,
Today is expected to remain quiet leading into the US session as thy are on public holiday.
Markets are moving in a risk on mode, global equities are edging higher across the board and precious metals are seeing some downside.
We may continue to see similar movement throughout the night due to lack of liquidity and fundamental news events.
Looking at a technical perspective Silver is potentially setting up a head and shoulders formation.
Silver 4 Hour Charts
RSI is showing a bearish divergence compared to market price highs. There appears to be a head and shoulders formation setting up similar to the one in March 2020.
If the head and shoulders formation plays through we may see a break below 16.50 which is currently the neck line.
Silver 1 Hour Charts
Trade setup: SELL SILVER (MT4/MT5 code XAGUSD), current price 17.08, stop loss 17.68 and take profit left open but targeting 16.00.
Stop loss: 60 pips
Take profit: 108 pips
Please check the specification for silver, your contract size may vary depending on your provider. Please use the CFD cheat sheet to help calculate your position size and risk.