On Wednesday, the price of silver significantly grew and returned to the level of 15 US dollars. This was a result of poor macroeconomic statistics from the US, which increased worries of the delay in interest rate increase.
The latest Consumer Price Index data showed an unexpected fall of 0.1% to the previous month, against 0.1% growth in July. In yearly terms, however, the growth remained the same at 0.2% as was forecasted.
Support and resistance
Bollinger Bands on the daily chart is directed horizontally, while the price range is widening. MACD is growing and giving a strong buy signal. Stochastic is also growing, but approaching the oversold zone.
The indicators are not giving a clear trading signal.
Support levels: 14.77, 14.63, 14.49, 14.37, 14.20 (end of August lows), 14.00 (psychologically important level).
Resistance levels: 15.00 (local high), 15.15, 15.25, 15.40 (24 August high), 15.64 (21 August high).
Long positions can be opened after the price consolidation above the level of 15.00 with targets at 15.20, 15.35 and stop-loss at 14.90.
Short positions can be opened after the breakdown of the level of 14.85 with targets at 14.63, 14.49 and stop-loss at 15.00.