Silver started to decline at the beginning of this week and reached a level of 16.50 on Tuesday, which coincides with 38,2% Fibonacci retracement level and currently represents a powerful support line. Bears have unsuccessfully tried to overcome this level several times. After having corrected to a level of 17.00 and having failed to consolidate near it, the price got back to a level of 16.75 at which trades closed finally. The metal is not trading today due to bank holidays in most countries. However, the publication of NFPR in the USA may have an impact on the pair on Monday. Besides, statistics for US service sector activity index are to be released on Monday. Silver is most likely to be trading in a narrow range of 16.50-16.90 next week. The borders of this channel should be regarded as starting point.
Support and resistance
A level of 16.60 is the nearest support level. A level of 16.50, bears' main current target, is the next one. Support lines are at 16.75, 16.90, 17.00.
Buy above the level of 16.90 with profit fixing at 17.50. Sell below the level of 16.50 with the nearest target at 16.15.