Thursday, November 26, 2015 12:15 PM EDT
Silver traders challenged the downward trend this morning by trying to lift silver prices above Friday’s high of $14.40. The market has since then pulled back, but the short-term trend remains bullish above yesterday’s low of $14.02.
I expect aggressive traders to be short at current levels with stops above $14.40, while traders awaiting short-term momentum alignment with the overall bearish trend, will wait for a break to yesterday’s low. In the case that $14.40 is breached, we may see stop loss orders being triggered and therefore causing a rally towards the next resistance level along the line of $14.58.
The one reason to be supporting silver prices at this stage is in response to news that the Chinese Nonferrous Metals Industry Association is in the process of suggesting to the Chinese government that it buy surplus aluminum, nickel and minor metals, including both cobalt and indium. The proposal does excludecopper but nevertheless, if they decide to run with it, we may see a boost to silver prices.
Reuters news reports that it would not be unusual for the Chinese government to intervene, citing their previous copper buying spree back in 2011. This eventually lifted copper futures by 30%.
DISCLOSURES
DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
less
How did you like this article? Let us know so we can better customize your reading experience.