Silver price is falling after reaching the key resistance level and the upper border of the sideways narrowing trend. During a few days, the metal decreased by more than 5% and tested the level of 16.40 due to the significant growth of USD and outflow of the investments from shelter assets. In addition, the weakening of the instrument is due to technical factors of a long-term consolidation.
Today, Q1 US economic growth rate data and Consumer sentiment index.
Support and resistance
In the middle term, the downward momentum will maintain until the reaching of the lower border of the channel and the strongest support level of 16.10, which the price has been testing during the first quarter unsuccessfully. Afterward, the change of the direction, an upward correction, and reversal into narrow sideways consolidation within the channel of 16.10–16.75 are expected.
Technical indicators reflect the maintenance of the current sideways movement, MACD long positions’ volumes are insignificantly decreasing, the signal line is tending to the zero line, and Bollinger Bands are moving horizontally.
Resistance levels: 16.75, 16.85, 17.10, 17.30, 17.40, 17.70.
Support levels: 16.50, 16.10, 16.00, 15.90, 15.60, 15.00.
It is relevant to increase the volumes of pending long positions from the levels of 16.10, 16.00 with the targets at 16.75, 17.10 and stop loss 15.70.
|Entry Point||16.10, 16.00|
|Take Profit||16.75, 17.10|
|Support levels||15.00, 15.60, 15.90, 16.00, 16.10, 16.50, 16.75, 16.85, 17.10, 17.30, 17.40, 17.70|
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