Yesterday the price of silver significantly grew. The pair was supported by strong data on Chinese Trade Balance that managed to stabilise Asian markets a little. Exports from China shrank by 1.4%, while economists predicted an 8.0% fall. At the same time, imports declined by 7.6%, against a forecasted fall of 11.5%. These dynamics lead to a substantial increase in trade balance surplus that in December amounted to 60.9 billion US Dollars, while experts expected a fall to 53 billion USD.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is narrowing. MACD is growing and giving a quite strong buy signal. Stochastic is also growing remaining near the middle of its range.
The indicators recommend waiting for clearer trading signals.
Support levels: 14.00 (psychologically important level), 13.90, 13.83, 13.73 (12 January low), 13.63 (14 December low).
Resistance levels: 14.18 (local high), 14.30, 14.40 (28 December high), 14.48, 14.63 (7 December high), 14.77 (beginning of November high).
Long positions can be opened after the breakout of the level of 14.18 with targets at 14.30, 14.50 and stop-loss at 14.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 14.00 with targets at 13.90, 13.75 and stop-loss at 14.15. Validity – 1-3 days.