Due to lack of important US macro-economic news the pair XAG/USD traded quietly on Monday and by the end of the day silver has lost only 9 points, and dropped to the level of 15.96. This trading session is going to be quiet as well, as the release of the statistics on inventories at the wholesale warehouses for April in unlikely to have a strong impact on the price. MACD histogram is in the negative zone but above the signal line, which can be taken as the signal for the price reversal in the near future and formation of a buy signal.
Stochastic Oscillator has dropped to the oversold zone, the line %K has reached the point of intersection with the line %D and formed a buy signal.
Support and resistance
The nearest resistance level is 17.15 (last week highs) and 17.31 (local highs). Support level is the lows of 15.92.
Buy transactions can be made after breakdown of the nearest resistance level of 15.15 with the target of 17.65. Sell orders can be placed below the level of 15.92 take profit of 15.45 and stop-loss of 16.20.