Silver prices closed the September month at a level higher than the opening for the first time since June, when a downward momentum appeared on the market. As can be seen in the monthly chart below, the rate set new minima at $ 13.92, and then recovered all of these losses, to finally close over the support area between 14.32 – 14.45.
This behavior of the price action led to creation of a bullish pinbar. It may turn out that bulls will return to the market and corrective action will take place.
The nearest key horizontal resistance is now close to USD 15.60 per ounce. The next one can be found around 16.10. What’s more, the area created by these levels coincides with the channel EMA 10/20, which constitute a dynamic resistance in the current downward trend.
Moving to the daily chart for a moment, local support 14.45 yesterday was defended. In addition, the price at closures of the day stays above the EMA 10/20. Before reaching the key resistance (15.60) mentioned above, buyers will have to face a second level at USD 15.23.