The price of silver resumed its active decline on Wednesday, moving back down to the level of $14 per troy ounce. Analysts suggest that the price fell due to recent macroeconomic statistics, released in the US.
In particular, ADP Employment Change indicator grew from 196K to 217K, while analysts expected a decline to 190K. Nonfarm Productivity increased from 1.6% to 2.2% in the third quarter that confirmed the forecast. Moreover, Unit Labor Costs were up from 1.4% to 1.8% in the third quarter against 1.1%.forecast.
Support and resistance
Bollinger Bands indicator on the daily chart is moving moderately down. The price range is widening but remains too narrow for the price dynamics. MACD is declining and giving a sell signal. Stochastic has turned horizontally not far from the border of the oversold zone.
It is recommended to wait for clearer trading signals.
Support levels: 13.90, 13.82 (3 December low), 13.50, 13.00.
Resistance levels: 14.00, 14.17, 14.30, 14.48 (12 November high), 14.63, 14.77, 15.00.
Long positions can be opened if the price turns up at 13.90 and breaks out the level of 14.05 with the target at 14.30 and stop-loss at 13.90. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 13.90 with the target at 13.50 and stop-loss at 14.10. Validity – 2-3 days.