FxWirePro: Silver Breaks Key Support at $16.31, Good to Sell on Rallies
- XAG/USD is currently trading around $16.29 marks.
- It made intraday high at $16.39 and low at $16.25 levels.
- Intraday bias remains bearish till the time pair holds key resistance at $16.63 marks.
- A daily close below $16.31 will take the parity down towards key support at $16.15 marks.
- Alternatively, reversal from key support $16.31 will take the parity higher towards key resistances at $16.63, $16.88 (20D, 30D and 55D EMA cross over), $16.95, $17.11, $17.46 (May 09, 2016 high) and $17.55 (May 11, 2016 high) levels respectively.
- Important to note here that in a daily chart, 20D, 30D and 55D EMA heads up and confirms bullish trend. Current downside movement is short term trend correction only.
We prefer to take short position in XAG/USD above $16.32, stop loss $16.42 and target $16.15/ $16.07 marks.