XAG/USD: Technical analysis of 24.05
1. Current trend
Silver continues trading in the downward channel. At the beginning of the week silver reached new lows, going down to the level of 20.34 USD per ounce and leaving the limits of the channel. However, almost immediately, silver regained lost positions. The decline was driven by strengthening of the American currency and rumors about curtailing of the asset purchase program.
Most technical indicators show the decline. Stochastic is in the overbought zone, the line %K has crossed the line %D, indicating decline. The signal line and histogram of MACD indicator show sideways movement, while moving average lines also indicate decline.
2. Levels of support and resistance
At the moment the pair is testing resistance level of 22.60. If this level is broken down, the pair will go up to 22.90 and 61.8 Fibonacci. The nearest support level is 22.0, which is a strong level that should prevent further decline in price.
3. Trading tips
It makes sense to place pending orders to buy at the level of 22.00, aiming to take profit at the level of 23.
If the price consolidates above the level of 23.40, it is advisable to place buy orders..
Analyst of LiteForex Group of Companies