On Tuesday, the price of silver was moving slowly up from its lows, reached the day before. Despite the upcoming Fed meeting, traders were quite active.
It should be noted the price managed to grow amid favorable statistics on US Consumer Price Index. The data strengthened expectations that the Fed will start raising interest rates today. In annual terms, Consumer Price Index grew by 0.5% in November, while analysts expected a 0.4% increase. However, in monthly terms, the indicator remained unchanged that, nevertheless, confirmed the forecast.
Support and resistance
Bollinger Bands indicator on the daily chart is trying to move down. The price range is widening, but the price remains out of its borders. MACD is turning up, however, still keeping its sell signal. Stochastic is in the oversold zone and trying to turn up.
Bollinger Bands and Stochastic indicators have formed signals for correctional growth in the short term.
Support levels: 13.63 (14 December low), 13.50, 13.25, 13.00 (psychologically important level).
Resistance levels: 13.82, 13.90, 14.00, 14.17, 14.30 (near 9 December high), 14.48, 14.63 (7 December high), 14.77, 15.00.
Long positions can be opened after the breakout of the level of 13.83 (with appropriate indicators signals) with targets at 13.94, 14.05, 14.20 and stop-loss at 13.70. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 13.65 with targets at 13.40, 13.25 and stop-loss at 13.90. Validity – 1-3 days.