Silver leans on a crucial support level. - technical analysis - 23-12-2015

Silver prices rose in its short term and intra-day levels trading, approaching thereafter the resistance of 14.40, which represents the ratio 76.4% of Fibonacci retracement levels for a descending wave in the short term (from 14.64 to 13.64), with the positive support of the simple moving average for the period 50. the resistance bounced the price off to the crucial support of 14.25, which represents the ratio 61.8, and with relative power indicators reaching extremely overbought levels, and the beginning formation of a negative divergence in the Stochastic indicator as shown below the attached chart.

 

We therefore expect silver to fall, especially if the support of 14.25 was breached, targeting thereafter the support of 14.01, which represents the ratio 38.2 of the same retracement levels mentioned earlier.