Silver Price Prediction – Prices Are Exploding But Prices Are Overbought

0

Silver prices continued to explode, recovering sharply and ready to test higher levels. The dollar fell, closing near its lows for the session. A weaker dollar usually results in gains in precious metals. Since the price of silver is in US dollars, a weaker dollar generally supports the prices of silver. US yields have been mixed, with the 10-year rate increasing while the 2-year rate retreating. A rise in building confidence has helped support the long end of the treasure curve. Gold prices have also risen sharply, providing supply across the entire precious metals complex.

Technical analysis

Silver prices erupted and rallied sharply, breaking through trendline resistance near 24.17 which is now seen as short term support. Further support is seen near the 50 day moving average at 23.29. Prices are ready to test target resistance near September highs at 24.82. The 10-day moving average is about to overtake the 50-day moving average, which means that a short-term uptrend is now in place. Short-term momentum turned positive as the Rapid Stochastic generated a cross buy signal. The prices are overbought. The Fast Stochastic displays a reading of 98, well above the overbought trigger level of 80. The RSI is also rising, reflecting the acceleration of positive momentum.

Medium-term momentum turned positive as the MACD (Moving Average Convergence Divergence) index generated a cross buy signal. This happens when the MACD line (the 12 day moving average minus the 26 day moving average) crosses above the MACD signal line (the 9 day moving average of the MACD line). The MACD histogram prints in positive territory with an upward trajectory that indicates a rise in gold prices.

This article originally appeared on FX Empire

More from FXEMPIRE:


Source link

Share.

Leave A Reply