XAG/USD: price of silver grows

January 20, 2016

Current trend

On Tuesday, the price of silver was growing steadily. However, demand for commodity assets remains low amid not so favorable macroeconomic data from China.

Thus, according to Tuesday’s statistics, China’s GDP growth in the fourth quarter 2015 slowed down by 0.1% to 6.8% in annual terms that confirmed analysts’ expectations. The quarter-over-quarter indicator came in slightly below the forecast at 1.6% down from 1.8%.

Industrial Production data was also disappointing. In December 2015, Industrial Production increased by 5.9% after a 6.2% rise in the previous month while analysts expected the indicator at 6.0%.

Support and resistance

Bollinger Bands indicator on the daily chart is directed horizontally while the price range remains almost unchanged. MACD is growing and keeping a buy signal. Stochastic is moving up in the middle of its range.

According to the indicators, long positions are preferable.

Support levels: 14.00, 13.90, 13.83, 13.73 (12 January low), 13.63 (14 December low).

Resistance levels: 14.18 (13 January high), 14.30, 14.40 (28 December high), 14.48, 14.63 (7 December high), 14.77.

Trading tips

Long positions can be opened after the price bounces off from 14.00 and overcomes the level of 14.10 (with appropriate indicators signals) with targets at 14.21, 14.30 and stop-loss at 13.90. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 14.00 with targets at 13.87, 13.77 and stop-loss at 14.10. Validity – 2-3 days.

Publication source
LiteForex information  LiteForex reviews

December 9, 2016
Coeure - ECB ready to do more
ECB board member Benoit Coeure commented the yesterday decision in a radio interview. The central bank announced QE tapering stressing that it does not mean less engagement...
December 8, 2016
Tapering and extending
The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB...
December 7, 2016
Oil ma pull back to $40
The oil price fell for the first time in 4 days today as skepticism creeped in over some OPEC member’s commitment to keep to their end of the deal and cut production...

Orbex Rating
FOREX.com Rating
EXNESS Rating
HotForex Rating
OctaFX Rating
FIBO Group Rating

TropicalTrade Rating
OptionRally Rating
365BinaryOption Rating
OptionsXO Rating
Porter Finance Rating
Banc De Binary Rating