Current trend
Yesterday, silver prices fell significantly, renewing the year’s lows due to the expectations of further Fed’s interest rates growth. The head of the regulator Jerome Powell stated that he still supports the planned rate of monetary policy tightening, and in total it is planned to raise the rates 4 times this year.
Next week in Washington, there will be the meeting of European Commission Chairman Jean-Claude Juncker and President Trump to negotiate the reducing or canceling 20% taxes on European cars, which the US administration is preparing to introduce in the near future. If the agreement fails, EU is ready to introduce additional duties on American goods, the list of which is being developed at the moment.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range is actively expanding, but not as fast as the "bearish" dynamics develop. MACD indicator decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic almost did not react to the Thursday’s drop and is ready to reverse upwards, reflecting that silver is greatly oversold in the short and ultra-short term.
The current indicators’ readings do not contradict the further development of the "bearish" trend, but there is the possibility of developing corrective growth.
Resistance levels: 15.30, 15.46, 15.60, 15.83, 16.00.
Support levels: 15.09, 14.92, 14.77.
Trading tips
Long positions can be opened after a reverse near current levels and breakout of 15.30–15.46 with the target at 15.83 or 16.00 and stop loss 15.15–15.09.
Short positions can be opened after the breakdown of the levels of 15.09–15.00 with the target at 14.77–14.50 and stop loss 15.30.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 15.38
Take Profit 15.83
Stop Loss 15.09
Key Levels 14.77, 14.92, 15.09, 15.30, 15.46, 15.60, 15.83, 16.00
Alternative scenario
Recommendation SELL STOP
Entry Point 15.05, 14.95
Take Profit 14.77, 14.50
Stop Loss 15.30
Key Levels 14.77, 14.92, 15.09, 15.30, 15.46, 15.60, 15.83, 16.00
Yesterday, silver prices fell significantly, renewing the year’s lows due to the expectations of further Fed’s interest rates growth. The head of the regulator Jerome Powell stated that he still supports the planned rate of monetary policy tightening, and in total it is planned to raise the rates 4 times this year.
Next week in Washington, there will be the meeting of European Commission Chairman Jean-Claude Juncker and President Trump to negotiate the reducing or canceling 20% taxes on European cars, which the US administration is preparing to introduce in the near future. If the agreement fails, EU is ready to introduce additional duties on American goods, the list of which is being developed at the moment.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range is actively expanding, but not as fast as the "bearish" dynamics develop. MACD indicator decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic almost did not react to the Thursday’s drop and is ready to reverse upwards, reflecting that silver is greatly oversold in the short and ultra-short term.
The current indicators’ readings do not contradict the further development of the "bearish" trend, but there is the possibility of developing corrective growth.
Resistance levels: 15.30, 15.46, 15.60, 15.83, 16.00.
Support levels: 15.09, 14.92, 14.77.
Trading tips
Long positions can be opened after a reverse near current levels and breakout of 15.30–15.46 with the target at 15.83 or 16.00 and stop loss 15.15–15.09.
Short positions can be opened after the breakdown of the levels of 15.09–15.00 with the target at 14.77–14.50 and stop loss 15.30.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 15.38
Take Profit 15.83
Stop Loss 15.09
Key Levels 14.77, 14.92, 15.09, 15.30, 15.46, 15.60, 15.83, 16.00
Alternative scenario
Recommendation SELL STOP
Entry Point 15.05, 14.95
Take Profit 14.77, 14.50
Stop Loss 15.30
Key Levels 14.77, 14.92, 15.09, 15.30, 15.46, 15.60, 15.83, 16.00