Silver Price Prediction – Prices Rise But Stay In An Uptrend


Silver prices edged down, falling back to Wednesday’s breakout level as the dollar rose. Gold prices were also lower, which weighed on the entire precious metal complex. US yields have been strong, with both the 2-year yield and the 10-year yield increasing. Stronger-than-weaker than expected leading indicators somewhat offset jobless claims in the United States.

Technical analysis

Silver prices edged down but held Wednesday’s breakout level on an ascending trendline near 24.08. Resistance is seen near September highs at 24.88. The 10-day moving average has passed 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. Prices remain overbought with the Fast Stochastic posting a reading of 82, above the overbought trigger level of 80 which heralds a correction. 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 rising silver prices.

Shift in leading indicators

The Conference Board said its leading indicators index rose 0.2% in September and indicated somewhat slower growth. The US LEI rose again in September, but at a slower pace, suggesting that the economy remains on a more subdued growth path compared to the first half of the year.

This article originally appeared on FX Empire

More from FXEMPIRE:

Source link


Leave A Reply