Current trend
Silver prices showed moderate growth in trading on Tuesday, December 26, and during the morning session on December 27 managed to update the local maximum since the end of November. The instrument is supported by rather weak position of the US currency, which is sluggishly responding to the macroeconomic statistics published in the US. Additional support for silver is another round of aggravation of the geopolitical situation around North Korea.
On Wednesday, December 27, North Korea celebrates the Constitution Day, and analysts believe that the DPRK leadership can make new statements in the framework of nuclear and missile programs, the development of which continues despite the US National Security Council resolution.
Support and resistance
Bollinger Bands in D1 chart show an active upward turn. The price range is expanding, however, it fails to catch the development of "bullish" sentiments at the moment. In this regard, one can look at the emergence of corrective dynamics in the short term.
MACD indicator is growing preserving a stable buy signal (the histogram is above the signal line). There is an opportunity to maintain the existing long positions in the short term, whereas the opening of new transactions now can be delayed.
Stochastic retains an upward direction, but is located in close proximity to its maximum values, which indicates instrument's overbought in the short term. It is necessary to take into account the risks of the appearance of a "bearish" correction.
Resistance levels: 16.52, 16.63, 16.74, 16.86.
Support levels: 16.40, 16.22, 16.00, 15.87, 15.77.
Trading tips
To open long positions, one can rely on the breakdown of 16.52 mark, provided that the showing of technical indicators do not contradict the development of the "bullish" trend. Take-profit — 16.74-16.86. Stop-loss – 16.35. Implementation time: 2-3 days.
A rebound from the level of 16.52, as from resistance, followed by a breakdown of 16.40 downwards, may become a signal for corrective sales with the target of 16.20-16.10. Stop-loss – 16.55. Implementation time: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 16.55
Take Profit 16.74, 16.86
Stop Loss 16.35
Key Levels 15.77, 15.87, 16.00, 16.22, 16.40, 16.52, 16.63, 16.74, 16.86
Alternative scenario
Recommendation SELL STOP
Entry Point 16.37
Take Profit 16.20, 16.10
Stop Loss 16.55
Key Levels 15.77, 15.87, 16.00, 16.22, 16.40, 16.52, 16.63, 16.74, 16.86
Silver prices showed moderate growth in trading on Tuesday, December 26, and during the morning session on December 27 managed to update the local maximum since the end of November. The instrument is supported by rather weak position of the US currency, which is sluggishly responding to the macroeconomic statistics published in the US. Additional support for silver is another round of aggravation of the geopolitical situation around North Korea.
On Wednesday, December 27, North Korea celebrates the Constitution Day, and analysts believe that the DPRK leadership can make new statements in the framework of nuclear and missile programs, the development of which continues despite the US National Security Council resolution.
Support and resistance
Bollinger Bands in D1 chart show an active upward turn. The price range is expanding, however, it fails to catch the development of "bullish" sentiments at the moment. In this regard, one can look at the emergence of corrective dynamics in the short term.
MACD indicator is growing preserving a stable buy signal (the histogram is above the signal line). There is an opportunity to maintain the existing long positions in the short term, whereas the opening of new transactions now can be delayed.
Stochastic retains an upward direction, but is located in close proximity to its maximum values, which indicates instrument's overbought in the short term. It is necessary to take into account the risks of the appearance of a "bearish" correction.
Resistance levels: 16.52, 16.63, 16.74, 16.86.
Support levels: 16.40, 16.22, 16.00, 15.87, 15.77.
Trading tips
To open long positions, one can rely on the breakdown of 16.52 mark, provided that the showing of technical indicators do not contradict the development of the "bullish" trend. Take-profit — 16.74-16.86. Stop-loss – 16.35. Implementation time: 2-3 days.
A rebound from the level of 16.52, as from resistance, followed by a breakdown of 16.40 downwards, may become a signal for corrective sales with the target of 16.20-16.10. Stop-loss – 16.55. Implementation time: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 16.55
Take Profit 16.74, 16.86
Stop Loss 16.35
Key Levels 15.77, 15.87, 16.00, 16.22, 16.40, 16.52, 16.63, 16.74, 16.86
Alternative scenario
Recommendation SELL STOP
Entry Point 16.37
Take Profit 16.20, 16.10
Stop Loss 16.55
Key Levels 15.77, 15.87, 16.00, 16.22, 16.40, 16.52, 16.63, 16.74, 16.86