Current trend

Silver prices still tried to grow yesterday but failed to consolidate above a level of 16.00.

The silver is slightly supported with fears about the world economy's growth rates intensified with the weak macro-economic indicators from the leading countries.  In particular, IMF has recently announced that the 2-year forecast for the world economy's growth  has been lowered.

Today, the markets will be waiting for the publication of FED's final reports that would throw light on approximate dates of US interest rate rise and evaluate the general state of economy.

Support and resistance

The Bollinger bands indicator is growing on the daily chart and the price range is widening actively.  MACD is turning downwards, keeping the "buy" signal. Located in the overbought zone, Stochastic attempts to turn downwards, which can be regarded in the short term as the potential formation of a correctional decline.

Indicators suggest the opportunity of opening short positions.

Support levels: 15.64 (local trough), 15.41 (resistance level on 18th September), 15.25, 15.15, 15.00, 14.77, 14.63, 14.46, 14.27 (trough on 15th September).

Resistance levels: 15.84 (local peak), 16.00, 16.10 (peak on 7th October), 16.46 (peak on 18th June), 16.84, 17.16.

Trading tips

Sell from the level of 15.60 with a target at 15.25 and Stop Loss at 15.75. This recommendation would be valid for 1-2 days.

Long positions can be opened with targets at 16.10 and 16.30, and Stop Loss at 15.60  once the pair has broken the level of 15.75. This recommendation would be valid for 1-3 days.

XAG/USD: silver under correction

XAG/USD: silver under correction




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