Technical Analysis XAGUSD : 2021-05-04

[IFC Markets]

Recommendation for Silver:Buy​

Buy Stop : Above 27

Stop Loss : Below 24.5



Indicator : Neutral

MACD : Buy

MA(200) : Neutral

Fractals : Buy

Parabolic SAR : Buy

Bollinger Bands : Neutral

Chart Analysis​

On the daily timeframe, XAGUSD: D1 overpassed the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if XAGUSD rises above its last high: 27. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the lower Bollinger band and the 200-day moving average line: 24.5. After opening a pending order, we can move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and place a stop loss, moving it in the direction of the bias. If the price meets the stop loss (24.5) without activating the order (27), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis​

Precious metals are rising in price amid a drop in the US dollar index and the outbreak of the coronavirus pandemic in India. Will the XAGUSD price continue to rise? According to the China Gold Association, gold consumption in China in Q1 2021 almost doubled compared to the same period in 2020. In this review, we are looking at the silver chart, which is attractive as both a precious and an industrial metal. Palladium, which has similar features, hit the all-time high last week. Note that the rise in silver quotes on Monday occurred during the holidays in China and Japan. Demand for precious metals may increase amid increasing global risks due to Covid-19. According to the World Health Organization, the number of people infected with coronavirus in the world has increased for the 9th week in a row and set a new maximum of 5.7 million people. This happened mainly due to India. In total, 153.5 million people infected with coronavirus in the world, and 3.2 million died. The publication of Non-Farm Payrolls on Friday may be the main event of this week for the greenback.