Last Friday we pointed out to our followers on Twitter that GBP, EUR, XAU and XAG were all potential One Night Stand breakout candidates. Of these four setups one trade in XAG/USD filled on a break of the 10 day high going into Friday US session close. Trade entry @ 30.83 and trade exit @ 31.21 are marked on the chart below.
XAGUSD ONS
Friday breakouts taken in the direction of the underlying trend present one of the most robust short term trade setups available to traders and have performed incredibly well across a wide spectrum of markets over many decades. Past performance doesn’t of course guarantee future success and there will be losing trades, however this is a setup that we take and likely continue to take for the foreseeable future.
Silver broke out and closed above its descending triangle formation on Friday raising the possibility of a new leg up, next key resistance at 37.50. XAG/USD is currently short-term overbought with 2 period RSI reading 99.6 on the daily time-frame.
XAU Breakout
