Last week the price of silver grew a little despite strengthening across the market US dollar that was significantly supported after the publication of the Fed Interest Rate Decision.
The pair was supported by poor statistics that came out in the US on Friday. According to preliminary data, the Markit Services PMI fell from 56.1 to 53.7 points, instead of forecasted decline to 56.0 points, while the Markit Composite PMI fell from 55.9 to 53.5 points.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged after it widened out amid recent volatility increase. MACD is growing and giving a quite strong buy signal. Stochastic is in the middle of its range and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 14.00 (local low), 13.90, 13.82, 13.63 (14 December low), 13.50, 13.00.
Resistance levels: 14.20 (local high), 14.30 (16 December high), 14.48, 14.63 (7 December high), 14.77.
Long positions can be opened after the breakout of the level of 14.15 (with the appropriate indicators signals) with the target at 14.56 and stop-loss at 14.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 13.90 with the target at 13.60 and stop-loss at 14.10. Validity – 2-4 days.