At the beginning of last week, silver sharply went up and consolidated above the level of 16.50, which coincides with Fibonacci retracement of 38.2%, and which is also a strong resistance level. However, on Thursday the price of XAG/USD started to decline, returning to the level of the beginning of the week. Support, which prevented further decline in price, was the level of 16.00 (Fibonacci retracement of 23.6%). Nevertheless, at today’s opening session, silver went up and at is now traded at the level of 16.30.
Technically, the pair is within the channel of 16.50-16.00 and it makes sense to trade from the limits of this channel. Stochastic is in the overbought zone, not giving signals to sell. Histogram and the signal line of MACD are near the zero line, not giving any signals. Moving average lines indicate sideways movement. Now, it makes sense to wait when XAG/USD will be near the boundaries of the channel and then enter the market depending on the signals of the indicators.
Support and resistance
Resistance levels: 16.50, 16.60, 16.75 and 16.90. The main target of the “bulls” is to consolidate above the level of 16.50.
Support levels: 16.25, 16.10, 16.00 and 15.80. The “bears” will try to hold positions below the level of 16.00.
Short positions are recommended from the levels of 16.50 and 16.75 and below the level of 15.80. Buy positions can be opened from the levels of 16.00 and 15.80.