In the end of last week, the price of silver significantly fell and returned to the level of the beginning of the week. However, the growth possibility is still in place considering worsened prospects of the September start of monetary policy tightening in the US.
The major role in the last week strengthening of precious metals and the USD weakening played the Yuan devaluation and the followed forecasts reconsideration of the US interest rate increase dates. However, the USD gained support from Retail Sales and Industrial Production data in the US, which came out according to forecasts.
Support and resistance
Bollinger Bands on the daily chart is growing. MACD has failed to consolidate above the zero line, and is trying to turn down. Stochastic has left the overbought zone and is rapidly falling.
The indicators recommend the consider opening short positions in the short-term.
Support levels: 15.15 (14 August low), 15.00, 14.77, 14.63, 14.49, 14.37 (24 July and 4 August lows).
Resistance levels: 15.25 (local high), 15.40, 15.68 (12 August high), 15.68 (13 July high), 16.00 (psychologically important level).
Open short positions after the breakdown of the level of 15.00 with the target at 14.37 and stop-loss at 15.50.
Long positions can be opened after the price rebound from the level of 15.15 (with the appropriate indicators signals) with targets at 15.68, 16.00 and stop-loss at 14.77.Publication source