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.
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