Silver and gold continue losing ground owing to the appreciation of the US dollar. At the beginning of this week, XAG/USD dropped from 16.00 to 15.27. Today, silver has clawed back a part of losses and is currently trading at 15.60. The metal is very likely to start testing new local lows at about 15.05, but correction to a level of 15.95 is not excluded.
Technically, indicators are showing different readings. The MACD signal line is directed sideward, its volumes have started decreasing. Stochastic is pointing to an upward movement, the current correction. M20 moving average serves as a resistance line and does not allow the price above.
Support and resistance
The levels 15.80, 16.00, 16.25 serve as resistances. Bulls’ main target will be getting back above a level of 16.00. The support levels are 15.50 and 15.30.
Short positions should be opened from the levels 15.80 and 16.00 with a target at about 15.00-14.70. Buy above a level of 16.10 with a target at 16.50.