XAG/USD: silver prices are stable

Current trend

Silver prices are stable during today’s Asian session after a slight decline the day before. The instrument is supported by weak macroeconomic statistics from the USA, as well as the continuing uncertainty surrounding US-Chinese trade relations. The PRC took retaliatory sanctions against the American Human Rights Watch, which actively supports civil protests in Hong Kong. In addition, Beijing has banned the mooring of US ships in Hong Kong. It is highly likely that the parties will not be able to resume full-scale trade negotiations before the end of this year. In December, markets also fear a possible increase in import duties on Chinese goods, which could offset all the progress already achieved in the negotiations.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range expands slightly from below, indicating prevailing “bearish” sentiment in the short term. MACD is slightly declining keeping a weak sell signal (located below the signal line). Stochastic has reversed into a horizontal plane after a protracted decline, having reacted to the appearance of ambiguous trading dynamics in the nearest time intervals.

Current technical indicators remain uninformative. One should wait for clarification of the situation to open new transactions.

Resistance levels: 17.00, 17.21, 17.40, 17.56.

Support levels: 16.79, 16.71, 16.62.

Trading tips

To open long positions, one can rely on the breakout of 17.00. Take profit – 17.40. Stop-loss – 16.79. Implementation time: 2-3 days.

A breakdown of 16.79 may be a signal for new sales with target at 16.62 or 16.50. Stop loss – 16.93. Implementation time: 1-2 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    17.03

  • Take Profit

    17.40

  • Stop Loss

    16.79

  • Key Levels

    16.62, 16.71, 16.79, 17.00, 17.21, 17.40, 17.56

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    16.77

  • Take Profit

    16.62, 16.50

  • Stop Loss

    16.93

  • Key Levels

    16.62, 16.71, 16.79, 17.00, 17.21, 17.40, 17.56