FxWirePro Call Review: Silver rises on weaker dollar; maintain short positions with target extended

After a failure to break the $14 support area decisively, the silver bears are in the retreatment mood for now. This comes at a time when the U.S. dollar itself is in a retreat mode, which is positive for the Silver bulls. The dollar index is currently trading at 94.18, down 2.6 percent since mid-August. Silver also halted its decline in August and gained further in September. It is currently trading at $14.3 area.

In July we called on our readers to go short on Silver at the then current rate of $15.8 per troy ounce with a target of $14 per troy ounce area citing unfavorable fundamentals, which are a stronger dollar and rising interest rates, https://www.econotimes.com/FxWirePro-Short-Term-Outlook-Sell-Silver-targeting-14-per-troy-ounce-1403001

Since our call, the selloff in Silver had further intensified and based on our calculations, we extended the target from $14 per troy ounce to $12.75 area as we suspected that in addition to the above-mentioned unfavorable fundamentals, a slowdown in China thanks to U.S. trade war would be very bearish for the metal as it has long been the major consumer, https://www.econotimes.com/FxWirePro-Call-Review-Maintain-short-positions-in-Silver-target-further-extended-to-1275-1416989

Despite the recent rise, we would like to urge our readers to maintain short positions in silver with the target now extended to $12.25 per troy ounce area. The stop loss for the trade can be maintained at around $15 area.