Market Forecast 08/09/2017
Silver Price Eyes Further Gains
- Silver Price made a nice upside move and traded above $18.00 level against the US Dollar.
- There is a contracting and ascending triangle forming with current resistance at $18.20 on the hourly chart.
- Today in China, the Trade Balance report for August 2017 was released by the General Administration of Customs of the People’s Republic of China.
- The forecast was $48.60B, but the actual was a bit lower as there was a trade surplus of $41.99B.
Silver price started an upside move from the $17.50 swing low against the US Dollar and recently managed to move above the $18.00 level.
The price is trading with a decent bullish bias and likely to extend gains above $18.20 in the near term. At the moment, there is a contracting and ascending triangle forming with current resistance at $18.20 on the hourly chart.
On the downside, the triangle support is near $18.12, which is just above the 23.6% Fib retracement level of the last wave from the $17.79 low to $18.20 high.
The price is likely to stay in the bullish zone for some time and any dips from the current levels towards $18.10 or $18.00 can be considered as buying opportunity.
Chinese Trade Balance
Today in China, the Trade Balance report for August 2017 was released by the General Administration of Customs of the People’s Republic of China. The forecast was slated for a trade surplus of $48.60B, compared with the last $46.74B.
However, the actual result was a bit lower as there was a trade surplus of $41.99B. Moreover, the last reading was revised down from $46.74B to $46.73B.
Imports of goods and services in August 2017 were better, as there was a rise of 13.3%, more than the forecast of 10% and higher than the last 11%. Exports of goods and services in August 2017 were lower, as there was a rise of 5.5%, less than the forecast of 6% and a lot less than the last 7.2%.
Overall, the report was mixed, and unlikely to impact Silver prices in the short term.
Crude Oil Price Eyeing Upside Break
- Crude Oil Prices gained heavy bullish bias recently and traded above $49.00 against the US Dollar.
- There is a consolidation pattern forming with resistance at $49.65 on the hourly chart.
- A break above $49.65 would call for a test of $50.00.
It seems like Crude oil price started a major upside move from the $46.00 handle against the US Dollar. The price moved higher recently and managed to break many crucial resistances like $47.50, $48.00 and $49.00.
The price recently traded as high as $49.64 before starting a consolidation. Currently, there is a consolidation pattern forming with resistance at $19.65 on the hourly chart.
A major support sits near $49.00 and the 23.6% Fib retracement level of the last wave from the $46.99 low to $49.64 high. As long as the price is above $49.00, there is a chance of an upside break above $49.65.
Once there is a break above $49.65, it would open the doors for further gains towards the $50.00 handle in the near term.
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