Current trend
Prices for silver significantly increased at the trading on January 12, offsetting the decline throughout the past week.
The instrument was supported by news from Germany, which further weakened the US currency. According to German media reports, Angela Merkel's party managed to reach an agreement with the Social Democrats (SPD) on the formation of the ruling coalition, which in the near future should solve the problem of the suspended parliament and reduce the degree of political uncertainty in the country.
There was also support from the positive macroeconomic outlook from China, which reported a sharp increase in exports and trade surplus in December. Another stimulating factor is the Chinese New Year coming, which is likely to lead to an increase in physical demand for silver.
Support and resistance
The Bollinger Bands in D1 chart show stable growth. The price range is narrowing, reflecting the mixed nature of trading last days. As before, one should follow the channel trading strategy until the clarifying of the situation in the market.
After a short decline, the MACD indicator turned up again and formed a buy signal (the histogram is located above the signal line). There is an opportunity for planning new long positions in the short and/or ultra short term.
Stochastic strengthens quickly, approaching its maximum marks. Current showings of the indicator signal about the growing risks of the appearance of corrective dynamics, but do not contradict the further growth of the instrument.
Resistance levels: 17.34, 17.53, 17.66.
Support levels: 17.22, 17.10, 17.00, 16.86.
Trading tips
To open long positions, one can rely on the breakout of 17.34 mark, if the showings of technical indicators do not contradict the development of "bullish" dynamics. Take-profit at 17.66 or 17.85. Stop-loss – 17.10. Implementation time: 2-3 days.
The rebound from the level of 17.34 as from resistance, with the subsequent breakdown of 17.22 mark, can become a signal to the beginning of correctional sales with targets at 17.00 or 16.74. Stop-loss – 17.44. Implementation time: 1-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 17.37
Take Profit 17.66, 17.85
Stop Loss 17.10
Key Levels 16.86, 17.00, 17.10, 17.22, 17.34, 17.53, 17.66
Alternative scenario
Recommendation SELL STOP
Entry Point 17.20
Take Profit 17.00, 16.74
Stop Loss 17.44
Key Levels 16.86, 17.00, 17.10, 17.22, 17.34, 17.53, 17.66
Prices for silver significantly increased at the trading on January 12, offsetting the decline throughout the past week.
The instrument was supported by news from Germany, which further weakened the US currency. According to German media reports, Angela Merkel's party managed to reach an agreement with the Social Democrats (SPD) on the formation of the ruling coalition, which in the near future should solve the problem of the suspended parliament and reduce the degree of political uncertainty in the country.
There was also support from the positive macroeconomic outlook from China, which reported a sharp increase in exports and trade surplus in December. Another stimulating factor is the Chinese New Year coming, which is likely to lead to an increase in physical demand for silver.
Support and resistance
The Bollinger Bands in D1 chart show stable growth. The price range is narrowing, reflecting the mixed nature of trading last days. As before, one should follow the channel trading strategy until the clarifying of the situation in the market.
After a short decline, the MACD indicator turned up again and formed a buy signal (the histogram is located above the signal line). There is an opportunity for planning new long positions in the short and/or ultra short term.
Stochastic strengthens quickly, approaching its maximum marks. Current showings of the indicator signal about the growing risks of the appearance of corrective dynamics, but do not contradict the further growth of the instrument.
Resistance levels: 17.34, 17.53, 17.66.
Support levels: 17.22, 17.10, 17.00, 16.86.
Trading tips
To open long positions, one can rely on the breakout of 17.34 mark, if the showings of technical indicators do not contradict the development of "bullish" dynamics. Take-profit at 17.66 or 17.85. Stop-loss – 17.10. Implementation time: 2-3 days.
The rebound from the level of 17.34 as from resistance, with the subsequent breakdown of 17.22 mark, can become a signal to the beginning of correctional sales with targets at 17.00 or 16.74. Stop-loss – 17.44. Implementation time: 1-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 17.37
Take Profit 17.66, 17.85
Stop Loss 17.10
Key Levels 16.86, 17.00, 17.10, 17.22, 17.34, 17.53, 17.66
Alternative scenario
Recommendation SELL STOP
Entry Point 17.20
Take Profit 17.00, 16.74
Stop Loss 17.44
Key Levels 16.86, 17.00, 17.10, 17.22, 17.34, 17.53, 17.66