Scenario

Timeframe - Intraday

Recommendation - BUY STOP

Entry Point - 17.38

Take Profit - 17.54, 17.70, 17.84

Stop Loss - 17.15

Key Levels - 16.46, 16.60, 16.85, 17.00, 17.10, 17.14, 17.36, 17.54, 17.57, 17.70, 17.84, 18.00

Alternative scenario

Recommendation - SELL STOP

Entry Point - 17.05

Take Profit - 16.85, 16.60

Stop Loss - 17.25

Key Levels - 16.46, 16.60, 16.85, 17.00, 17.10, 17.14, 17.36, 17.54, 17.57, 17.70, 17.84, 18.00

Current trend

The price of silver fell on Thursday. In recent days, market dynamics has been largely influenced by expectations of the EU referendum. Though the latest polls indicate a certain decline in chances of a British exit from the EU, the other scenario is still seen as possible.

Moreover, statements made by ECB president and Fed Chair are worth noting. Mario Draghi said that voting to leave the EU would have serious negative consequences, but the ECB is ready to take action. Janet Yellen, in her turn, noted that Fed interest rate decision will be guided by macroeconomic indicators, such as GDP, unemployment and inflation. She also paid attention to real risks the global economy might face, amongst which is the forthcoming referendum.

Support and resistance

Bollinger Bands on the daily chart is directed up while the price range is narrowing actively. MACD has turned down and formed a sell signal. Stochastic is approaching the border of the oversold zone.

The indicators recommend waiting for clearer trading signals.

Support levels: 17.14, 17.10, 17.00, 16.85, 16.73, 16.60, 16.46.

Resistance levels: 17.36, 17.54, 17.57, 17.70, 17.84, 18.00.

Trading tips

Long positions can be opened after the price turns up and breaks out the level of 17.36 with targets at 17.54, 17.70, 17.84 and stop-loss at 17.15. Validity – 2-3 days.

Short positions can be opened after the level of 17.10 is broken down with targets at 16.85, 16.60 and stop-loss at 17.25. Validity – 2-4 days.