fb&XAGMXN Forecast | Preparing for the economic data publication in Mexico and the United States | IFCM India
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Technical Analysis &XAGMXN : 2021-05-11

Recommendation for XAG MXN:

Buy
Strong SellSellNeutralBuyStrong Buy

Above 555

Buy Stop

Below 488

Stop Loss

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Senior Analytical Expert
Articles 1739
IndicatorValueSignal
RSI Neutral
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Buy

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, XAGMXN: D1 approached the resistance line of the long-term descending channel. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if XAGMXN: D1 rises above the upper Bollinger band and the last high: 555. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the 200-day moving average line and the lower Bollinger line: 488. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal low. 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 (488) without activating the order (555), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

In this review, we propose to look at the Silver vs. MXN personal composite instrument (PCI), which reflects the price action of silver against the Mexican peso. Will the XAGMXN quotes rise?

This dynamic means the growth of silver quotes and the weakening of the Mexican peso. Inflation in Mexico in April 2021 was 6.08% in annual terms, while only 5.16% was expected. April inflation has been the highest since December 2017. On May 13, a regular meeting of the Bank of Mexico will be held. According to forecasts, the rate will be kept at the current level of 4%. Theoretically, this could have a negative impact on the Mexican peso exchange rate. Silver, along with other precious metals, is rising in price ahead of the release of US inflation data for April on May 12. It is expected to soar to a maximum since September 2011 at 3.6% y/y. This can exacerbate economic risks. The strong demand for industrial metals such as copper may be an additional positive factor for silver prices. More than half of the silver mined is used in the manufacture of industrial products.

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.