Current trend
Prices for silver rose on Friday, departing from local lows of December 2017, taking advantage of technical factors of USD correction. At the same time, today the instrument is declining steadily, reflecting the low interest in silver at the market.
Friday's statistics from the US failed to support USD, and investors preferred to concentrate on the weak data on GDP released the day before. Nevertheless, the Personal Expenditure index rose to +2.0% YoY in May after rising to 1.8% YoY in April, with a forecast of +1.9% YoY. Chicago PMI grew from 62.7 to 64.1 points in June, with the forecast of 60.0 points.
On Monday, investors will focus on statistics on ISM Price Paid index, as well as on the Markit Manufacturing PMI in the US for June.
Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting the emergence of "bullish" trend in the short term. MACD is going down preserving the previous sell signal (located below the signal line). Stochastic reversed in a horizontal plane in the immediate vicinity of the "20" level, still indicating the oversold silver in the short term.
Consider development of correctional growth in the short term. Some of existing sales should be closed, fixing profits.
Resistance levels: 16.00, 16.07, 16.20, 16.40.
Support levels: 15.83, 15.72, 15.50.
Trading tips
To open long positions, one can rely on the rebound from the support level of 15.83, with the subsequent breakout of the 16.00 mark. Take-profit — 16.30, 16.40 or 16.50. Stop-loss — 15.80.
The breakdown of the level of 15.83 may serve as a signal to further sales with the target at 15.50. Stop-loss — 16.00.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 16.05
Take Profit 16.30, 16.40, 16.50
Stop Loss 15.80
Key Levels 15.50, 15.72, 15.83, 16.00, 16.07, 16.20, 16.40
Alternative scenario
Recommendation SELL STOP
Entry Point 15.80
Take Profit 15.50
Stop Loss 16.00
Key Levels 15.50, 15.72, 15.83, 16.00, 16.07, 16.20, 16.40
Prices for silver rose on Friday, departing from local lows of December 2017, taking advantage of technical factors of USD correction. At the same time, today the instrument is declining steadily, reflecting the low interest in silver at the market.
Friday's statistics from the US failed to support USD, and investors preferred to concentrate on the weak data on GDP released the day before. Nevertheless, the Personal Expenditure index rose to +2.0% YoY in May after rising to 1.8% YoY in April, with a forecast of +1.9% YoY. Chicago PMI grew from 62.7 to 64.1 points in June, with the forecast of 60.0 points.
On Monday, investors will focus on statistics on ISM Price Paid index, as well as on the Markit Manufacturing PMI in the US for June.
Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting the emergence of "bullish" trend in the short term. MACD is going down preserving the previous sell signal (located below the signal line). Stochastic reversed in a horizontal plane in the immediate vicinity of the "20" level, still indicating the oversold silver in the short term.
Consider development of correctional growth in the short term. Some of existing sales should be closed, fixing profits.
Resistance levels: 16.00, 16.07, 16.20, 16.40.
Support levels: 15.83, 15.72, 15.50.
Trading tips
To open long positions, one can rely on the rebound from the support level of 15.83, with the subsequent breakout of the 16.00 mark. Take-profit — 16.30, 16.40 or 16.50. Stop-loss — 15.80.
The breakdown of the level of 15.83 may serve as a signal to further sales with the target at 15.50. Stop-loss — 16.00.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 16.05
Take Profit 16.30, 16.40, 16.50
Stop Loss 15.80
Key Levels 15.50, 15.72, 15.83, 16.00, 16.07, 16.20, 16.40
Alternative scenario
Recommendation SELL STOP
Entry Point 15.80
Take Profit 15.50
Stop Loss 16.00
Key Levels 15.50, 15.72, 15.83, 16.00, 16.07, 16.20, 16.40