At the beginning of the week, the price of silver managed to remain at current local highs. The precious metal is still supported by low demand for the USD amid speculation about the timing of the Fed's rate hike.
Last week, a series of week macroeconomic statistics was released, the negative effect of which was reinforced by the publication of FOMC meeting minutes. The regulator is seriously concerned about the problems of the Chinese economy and low inflation in the US, which remains significantly below the target level of 2%.
Support and resistance
Bollinger Bands indicator on the daily chart is growing, while the price range is widening actively. A possibility of a downward correction, indicated last week, is still relevant. MACD is turning down and has formed a sell signal. Stochastic has left the oversold zone and keeps moving downwards.
The indicators recommend short positions.
Support levels: 15.66 (current low), 15.41, 15.25, 15.15, 15.00, 14.77, 14.63, 14.46, 14.27 (15 September low).
Resistance levels: 15.84, 16.00, 16.10 (7 October high), 16.46 (18 June high), 16.84, 17.16.
Short positions can be opened after the breakdown of the level of 15.65 with targets at 15.40, 15.20 and stop-loss at 15.80. Validity - 1-3 days.
Long positions can be opened after the breakout of the level of 15.80 with targets at 16.05, 16.25 and stop-loss at 15.60. Validity - 2-4 days.