On Wednesday, the price of silver continued declining. The US dollar gains support from recent statements of the Fed officials who still suggest a possibility of a rate increase before the end of the year. Moreover, the American currency is strengthening amid expectations of the ECB meeting which is likely to outline the prospects of the European monetary policy. Analysts believe that the Regulator is unlikely to adopt new measures to stimulate the economy and expect the current monetary policy to be kept unchanged.
Support and resistance
Bollinger Bands indicator on the daily chart has turned horizontally, while the price range is still narrowing down. MACD is declining and keeping a sell signal. Stochastic is in the oversold zone and is trying to turn up.
It is recommended to wait for clearer trading signals.
Support levels: 15.62 (21 October low), 15.38 (8 October low), 15.25, 15.15, 15.00, 14.77, 14.63, 14.46, 14.27.
Resistance levels: 15.84, 16.00, 16.10, 16.18 (14 October high), 16.46 (18 June high).
Short positions can be opened after the breakdown of the level of 15.50 with targets at 15.15, 14.60 and stop-loss at 15.70. Validity – 1-2 days.
If the price overcomes the level of 16.15, long positions would become valid with the target at 16.75 and stop-loss at 15.95. Validity – 2-3 days.