Silver Surges to Record Highs: Is a correction Imminent?
Dateline: May 2, 2024
Silver spot XAGUSD is currently experiencing unprecedented volatility, driven by a confluence of factors including strong haven demand, speculative buying, and thin trading volumes due to the year-end holidays are also amplifying the volatility.
Recent weeks have seen a consistent pattern: markets frequently gap up during Monday’s Asian sessions, with bullish momentum frequently enough continuing throughout the week.This has created a cautious environment for traders, as other commodities have experienced daily moves of 1.5%-2%, while silver continues to exhibit much sharper fluctuations.
- Silver prices have surged nearly 69% in two months.
- Extreme volatility-3%-4% daily swings-is now the norm.
- Intraday trading is considered the safest strategy.
- Profit-taking is highly likely in the near term, potentially triggering a correction.
Given the current conditions, a cautious approach is warranted. Traders are understandably hesitant about where and how to enter positions, particularly in silver spot XAGUSD.A disciplined intraday trading strategy, with strict stop-loss orders, appears to be the most prudent course of action.
Intraday Trading Strategy – Silver Spot XAGUSD
- Sell zone: $72.700 – $72.800 range
- Stop loss: $73.500
- Downside Targets: $71.300 – $71.000 –
