Current trend

The price of silver keeps a downward trend, having lost 20% over the past few months, and doesn't recover.

Since mid-August, quotes have moved to lateral consolidation but have not yet moved out of the descending channel. At the end of August, the price began to recover, having passed strong resistance levels of 14.75, 14.85. Later, the instrument stopped at the key resistance level of 15.00, after which the price quickly went down amid asset sales. Some recovery is due to the fact that over the past two weeks the dollar has significantly weakened against major currencies. It is the dollar rate and the political background that will be the catalysts for the price.

At the end of the week, there will be revised data on the growth rate of the US economy in Q2 2018.

Support and resistance

In the medium term, lateral consolidation after a significant decline is expected. In the near future, we can see the price at local minima of 14.45, 14.30, after which the upward wave will again form to 15.00. No sharp move down or a significant recovery are expected, therefore, trade from the borders of the lateral range is relevant.

Technical indicators on H4 chart and below confirm the forecast of the formation of the lateral channel: MACD indicates a decrease in the volume of short positions, the signal line is near the zero line, and Bollinger Bands have lined up horizontally.

Support levels: 14.60, 14.45, 14.30, 13.75, 13.50, 13.00.

Resistance levels: 14.75, 14.75, 15.00, 15.60, 15.90, 16.10, 16.40, 16.50, 16.75, 16.85.

Trading tips

Long positions may be opened from 14.30 with the target at 15.00 and stop loss at 14.05.

Short positions may be opened from 15.00 with the target at 14.30 and stop loss at 15.25.

Spot Silver

BuySellSpread
14.48214.347135

Scenario

TimeframeWeekly
RecommendationsBUY STOP
Entry Point14.30
Take Profit15.00
Stop Loss14.05
Support levels13.00, 13.50, 13.75, 14.30, 14.45, 14.60, 14.75, 14.75, 15.00, 15.60, 15.90, 16.10, 16.40, 16.50, 16.75, 16.85

Alternative scenario

RecommendationsSELL LIMIT
Entry Point15.00
Take Profit14.30
Stop Loss15.25
Support levels13.00, 13.50, 13.75, 14.30, 14.45, 14.60, 14.75, 14.75, 15.00, 15.60, 15.90, 16.10, 16.40, 16.50, 16.75, 16.85
XAG/USD: consolidation continues

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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