Technical Analytics Report

Daily Analysis Report 13 Jan '2022


Today’s Analysis for Silver:

Metal quotations are forming a “bullish” surge, according to XAG/USD.

The current state of affairs

Silver prices have been steadily rising, with local highs from January 5 is updated. The quotes are backed by the weakest positions of the US dollar, which is under pressure due to uncertainties regarding the US Fed’s future strategy.

In contrast, consumer inflation figures released the day before in the United States did not provide any clarification, as they were close to estimates. Furthermore, traders are again concerned about the global increase in the prevalence of coronavirus infection, implying that this will impact central bank plans worldwide. On Tuesday, the number of COVID-19 hospitalizations in the United States reached new highs since the outbreak began, with mortality also reaching new highs since October.

Investors are now focusing on jobless claims dynamics in the United States. The number of Initial Jobless Claims for the week ending January 7 is predicted to fall slightly to 200K from 207K the week before. Continuing Jobless Claims may fall from 1.754 million to 1.733 million.

Support and Resistance:

The Bollinger Bands on the D1 chart show flat dynamics. The price range has been significantly widened from the previous content, but it is still large enough to accommodate the current level of market activity. The MACD indicator increases, indicating a solid purchase signal (located above the signal line). In addition, the indicator is attempting to consolidate above zero. Stochastic does not contradict the rest of the indicators’ overall “bullish” picture, but it points to the dangers of overbought silver in the ultra-short-term.

Levels of resistance: 23.37, 23.60, 24.00, 24.37.

 Levels of support: 23.00, 22.70, 22.40, 22.00.

Advice on trading:

The breakout of 23.37 might be used to open long trades with a target of 24.00. 23.00 is the stop-loss level. Time to implement: 2-3 days.

With the collapse of 23.00, the return of a “bearish” trend could herald new sales with a target of 22.40. 23.37 is the stop-loss level.