Current trend
Over the past three months, the silver price has rapidly declined by 20% from the level of 17.20 to the levels of 14.00, 13.90. The main catalyst for the weakening of all precious metals remains a significant growth of USD and a tense situation in the raw materials market against the backdrop of the latest US sanctions. From the middle of the last trading week, the price was slightly corrected upwards and reached the level of 14.20.
This week, special attention should be paid to data on the labor market, the construction sector and the main US indices.
Support and resistance
In the medium term, the downward momentum will continue, the price may reach the end of 2015 minimum at 13.55. Most likely, after reaching this level, the instrument will move within the sideways consolidation. Further, a prolonged upward correction is forecasted and the price will return above the level of 15.00.
Technical indicators keep the signal to decline, MACD reflects an increase in the volume of short positions, Bollinger bands are directed downward.
Resistance levels: 14.60, 15.00, 15.60, 16.00, 16.10, 16.40, 17.10.
Support levels: 13.90, 13.55, 13.20, 13.00, 12.70, 12.10.
Trading tips
It is relevant to open short positions from the current level with the target at 13.55 and stop loss 14.45.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 14.17
Take Profit 13.55
Stop Loss 14.45
Key Levels 12.10, 12.70, 13.00, 13.20, 13.55, 13.90, 14.60, 15.00, 15.60, 16.00, 16.10, 16.40, 17.10
Over the past three months, the silver price has rapidly declined by 20% from the level of 17.20 to the levels of 14.00, 13.90. The main catalyst for the weakening of all precious metals remains a significant growth of USD and a tense situation in the raw materials market against the backdrop of the latest US sanctions. From the middle of the last trading week, the price was slightly corrected upwards and reached the level of 14.20.
This week, special attention should be paid to data on the labor market, the construction sector and the main US indices.
Support and resistance
In the medium term, the downward momentum will continue, the price may reach the end of 2015 minimum at 13.55. Most likely, after reaching this level, the instrument will move within the sideways consolidation. Further, a prolonged upward correction is forecasted and the price will return above the level of 15.00.
Technical indicators keep the signal to decline, MACD reflects an increase in the volume of short positions, Bollinger bands are directed downward.
Resistance levels: 14.60, 15.00, 15.60, 16.00, 16.10, 16.40, 17.10.
Support levels: 13.90, 13.55, 13.20, 13.00, 12.70, 12.10.
Trading tips
It is relevant to open short positions from the current level with the target at 13.55 and stop loss 14.45.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 14.17
Take Profit 13.55
Stop Loss 14.45
Key Levels 12.10, 12.70, 13.00, 13.20, 13.55, 13.90, 14.60, 15.00, 15.60, 16.00, 16.10, 16.40, 17.10