FxWirePro- Silver Trade Idea

FxWirePro- Silver Trade Idea

Silver pared most of its gains on easing Geo political tension. It hits a low of $29.98 and currently trading around $30.33.

Israel and Lebanon have agreed to a 60-day ceasefire deal to end the conflict with Hezbollah. During this time, Israeli forces will pull back from southern Lebanon, and Hezbollah will move its heavy weapons north. The Lebanese Army will also move in to help stabilize the area, and the U.S. will lead a committee to ensure both sides follow the agreement. While this is a positive step towards reducing violence, there are still some concerns about the deal being finalized.

Current Market Indicators

The gold-silver ratio is currently at 86.50, showing that gold  has outperformed gold recently. A ratio above 80 suggests silver might become a more attractive investment compared to gold.

Technical Analysis: Key Levels to Watch

For trading, the major level to monitor is $30. Silver is below key moving averages, with near-term support at $30. If it falls below this, it could target $29.60/$28.47. On the upside, immediate resistance is at $30.80; breaking this could lead to targets of $31.25/$31.75/$32.20, $32.75, $33, $33.60, $34, $34.50, and even $34.73.

Trading Strategy: Opportunities in the Current Market

It may be a good strategy to sell on rallies around $31.47-50, with a stop-loss at $30.75 and a target price of $28.60.