Current trend
Yesterday, silver prices fell significantly, renewing the minimum since May 16, due to the growing dollar and investors’ concerns over the trade conflict between the US and China. After accepting 25 percent fees on Chinese goods worth $50 billion, Donald Trump threatened to introduce an additional 10 percent tariffs on goods worth $200 billion, which China promised to mirror.
Additional pressure on silver is provided by the prospects for Fed’s interest rate further increase, which grew after confident US Housing market data release. According to published data, in May the volume of construction grew to an 11-year high, which was significantly better than the forecasts.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range is widening from below, letting the "bears" reach new local lows. MACD decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic reached its lows and turned horizontally, reflecting that the instrument is oversold in the short and/or ultra-short term.
Current indicators’ readings do not contradict the further development of the "bearish" trend in the short term. However, at the end of the week, a corrective growth is possible.
Resistance levels: 16.27, 16.37, 16.51, 16.60, 16.71.
Support levels: 16.18, 16.09, 16.00.
Trading tips
Long positions can be opened after a rebound from the level of 16.18 and breakout of the level of 16.27 with the target at 16.51 or 16.60 and stop loss 16.10. Implementation period: 2–3 days.
Short positions can be opened after a breakdown of the level of 16.18 with the target at 16.00 and stop loss 16.30. Implementation period: 1–2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 16.29
Take Profit 16.51, 16.60
Stop Loss 16.10
Key Levels 16.00, 16.09, 16.18, 16.27, 16.37, 16.51, 16.60, 16.71
Alternative scenario
Recommendation SELL STOP
Entry Point 16.15
Take Profit 16.00
Stop Loss 16.30
Key Levels 16.00, 16.09, 16.18, 16.27, 16.37, 16.51, 16.60, 16.71
Yesterday, silver prices fell significantly, renewing the minimum since May 16, due to the growing dollar and investors’ concerns over the trade conflict between the US and China. After accepting 25 percent fees on Chinese goods worth $50 billion, Donald Trump threatened to introduce an additional 10 percent tariffs on goods worth $200 billion, which China promised to mirror.
Additional pressure on silver is provided by the prospects for Fed’s interest rate further increase, which grew after confident US Housing market data release. According to published data, in May the volume of construction grew to an 11-year high, which was significantly better than the forecasts.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range is widening from below, letting the "bears" reach new local lows. MACD decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic reached its lows and turned horizontally, reflecting that the instrument is oversold in the short and/or ultra-short term.
Current indicators’ readings do not contradict the further development of the "bearish" trend in the short term. However, at the end of the week, a corrective growth is possible.
Resistance levels: 16.27, 16.37, 16.51, 16.60, 16.71.
Support levels: 16.18, 16.09, 16.00.
Trading tips
Long positions can be opened after a rebound from the level of 16.18 and breakout of the level of 16.27 with the target at 16.51 or 16.60 and stop loss 16.10. Implementation period: 2–3 days.
Short positions can be opened after a breakdown of the level of 16.18 with the target at 16.00 and stop loss 16.30. Implementation period: 1–2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 16.29
Take Profit 16.51, 16.60
Stop Loss 16.10
Key Levels 16.00, 16.09, 16.18, 16.27, 16.37, 16.51, 16.60, 16.71
Alternative scenario
Recommendation SELL STOP
Entry Point 16.15
Take Profit 16.00
Stop Loss 16.30
Key Levels 16.00, 16.09, 16.18, 16.27, 16.37, 16.51, 16.60, 16.71