Current trend
Prices for silver fell significantly on Wednesday, having receded to local lows of July 3 due to another worsening of trade crisis between the US and China.
Washington's threat to introduce new import duties on Chinese goods worth USD 200 billion contributed to a noticeable increase in demand for USD, but it could also lead to a review of the Fed's monetary policy.
Today, the instrument is being corrected, but investors are not active yet. The focus will be on statistics on consumer inflation in the US for June. FOMC Members Kashkari and Harker's speeches as well as the publication of a monthly budget statement in the US are also expected.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing and does not keep up with the surge of "bearish" sentiment this week. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic is declining somewhat more confidently, but at the moment it is already approaching its minimum levels, which indicates the growing risks of silver oversold in the ultra-short term.
The indicators do not contradict the further development of the downtrend in the short term, so part of the existing sales should be left open for some time. It is better not to open new short positions for some time.
Resistance levels: 15.83, 16.00, 16.12, 16.28.
Support levels: 15.67, 15.57, 15.51.
Trading tips
To open long positions, one can rely on the rebound from the support level of 15.67, with the subsequent breakout of 15.83. Take-profit — 16.12 or 16.28. Stop-loss — 15.60.
A confident breakdown of the level of 15.67 may be a signal to further sales with targets at 15.51 or 15.45, 15.40. Stop-loss – 15.80.
Implementation period: 2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 15.87
Take Profit 16.12, 16.28
Stop Loss 15.70, 15.60
Key Levels 15.51, 15.57, 15.67, 15.83, 16.00, 16.12, 16.28
Alternative scenario
Recommendation SELL STOP
Entry Point 15.65
Take Profit 15.51, 15.45, 15.40
Stop Loss 15.80
Key Levels 15.51, 15.57, 15.67, 15.83, 16.00, 16.12, 16.28
Prices for silver fell significantly on Wednesday, having receded to local lows of July 3 due to another worsening of trade crisis between the US and China.
Washington's threat to introduce new import duties on Chinese goods worth USD 200 billion contributed to a noticeable increase in demand for USD, but it could also lead to a review of the Fed's monetary policy.
Today, the instrument is being corrected, but investors are not active yet. The focus will be on statistics on consumer inflation in the US for June. FOMC Members Kashkari and Harker's speeches as well as the publication of a monthly budget statement in the US are also expected.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing and does not keep up with the surge of "bearish" sentiment this week. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic is declining somewhat more confidently, but at the moment it is already approaching its minimum levels, which indicates the growing risks of silver oversold in the ultra-short term.
The indicators do not contradict the further development of the downtrend in the short term, so part of the existing sales should be left open for some time. It is better not to open new short positions for some time.
Resistance levels: 15.83, 16.00, 16.12, 16.28.
Support levels: 15.67, 15.57, 15.51.
Trading tips
To open long positions, one can rely on the rebound from the support level of 15.67, with the subsequent breakout of 15.83. Take-profit — 16.12 or 16.28. Stop-loss — 15.60.
A confident breakdown of the level of 15.67 may be a signal to further sales with targets at 15.51 or 15.45, 15.40. Stop-loss – 15.80.
Implementation period: 2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 15.87
Take Profit 16.12, 16.28
Stop Loss 15.70, 15.60
Key Levels 15.51, 15.57, 15.67, 15.83, 16.00, 16.12, 16.28
Alternative scenario
Recommendation SELL STOP
Entry Point 15.65
Take Profit 15.51, 15.45, 15.40
Stop Loss 15.80
Key Levels 15.51, 15.57, 15.67, 15.83, 16.00, 16.12, 16.28