Since the opening of the European session, the price of silver is growing but the downward trend is still relevant. A key support level is around 5/8 Murrey or 14.55. If the price consolidates below it, then the next target will be the level of 14.00.
The precious metals are under pressure of the Fed’s aggressive policy, which continues to raise interest rates and provides an increase in government bonds’ yield and makes these instruments attractive for investment. On the other hand, criticism of the regulators’ actions by Donald Trump may affect the global balance of power in the market, and as monetary policy changes, silver will increase again. Nevertheless, the US economy continues to grow, and many economists believe that there is no point in mitigating the policy. Thus, the published data on Industrial Production for September increased by +5.1%. Capacity Utilization decreased slightly to 78.1% against a forecast of 78.2%, which may be a short-term recession, which will reverse upwards again.
Support and resistance
Stochastic is at 22 points and reflects a possibility of a correction.
Resistance Levels: 14.74, 14.84.
Support levels: 14.55, 14.00.
Short positions can be opened after the breakdown of the level of 14.55 with the target at 14.00 and the stop loss at 14.74.
|Support levels||14.00, 14.55, 14.74, 14.84|
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