Silver prices retraced Monday’s gain sliding to trendline support which was the old resistance. The dollar rallied for a second consecutive trading session, putting downward pressure on the entire precious metals complex. Returns were mixed despite a stronger-than-expected consumer confidence report.
Silver prices reversed lower after breaking above trendline resistance which is now support at 24. Further support is seen near the 10 day moving average at 23.81. Resistance is seen 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 about to be set. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. 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 higher prices.
Consumer confidence is increasing
U.S. consumer confidence rose in October after three straight declines, with public anxiety over the delta variant of the coronavirus appearing to have waned. Meanwhile, new homes in the United States hit a six-month high in September. New home sales jumped 14.0% to an annual rate of 800,000 units last month, the highest level since March.
This article originally appeared on FX Empire