Silver (XAG/USD) continues to trade within a very tight range, as it continues to hold steady at 16.17. Silver made an intraday high of 17.65 and a low of 17.43, while still maintaining its bullish bias as price is consolidating in a symmetrical triangle after price entrance from in initial uptrend.
The asset is still waiting for further direction from the outcome of the US-China trade talks, which could soon be made public after President Donald Trump hinted that the Phase 1 agreement could be signed at the APEC summit in Chile.
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XAGUSD Near-term Outlook
Price activity is very compact at the moment as silver has basically been trading in a very narrow range of a few cents daily. Bullish continuation bias continues to prevail as price action entered the symmetricaly triangle from below. There are also key price levels to factor in, with immediate horizontal resistance at 17.61.
Further key resistance areas lie at $17.81, $18.14 (Sep 13 high) and $18.37 (Sep 12 high and 23.6% Fibonacci level). A close of the daily candle above the key resistance at 17.61 will bring these areas into focus in sequential order.
On the flip side, a close of XAGUSD price below $17.37 (using time or price filters) will introduce the downside targets at 17.15, 16.98 (50% Fibonacci retracement) and 16.81 (lows of August 19 and 20).
The 20-day moving average is the dynamic support which continues to confirm that the bullish trend is intact. Silver price activity is very close to apex of the triangle, so a breakout is in the works.Download our latest quarterly market outlook for our longer-term trade ideas.
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