Silver Price Prediction – Prices Break Higher on Weak Texas Manufacturing

Silver prices broke out to higher levels after consolidating above trend line support. The dollar rebounded and moved higher but failed to weigh on the precious metals complex. Yields pulled back as both the 10-year and the 2-year Treasury yield moved lower.  Softer than expected, Dallas Fed Manufacturing levels helped ease the upward pressure on Treasury yields.

Technical analysis

Silver prices attempted to continue to break out after a couple of day’s of consolidation. Support is seen near the 10-day moving average at 23.66. Resistance is seen near the September highs at 24.82. The 10-day moving average exceeded the 50-day moving average, which means a short-term uptrend is in place. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as 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 is printing in positive territory with an upward sloping trajectory which points to higher prices.

Texas Manufacturing Eases

According to data from the Federal Reserve Bank of Dallas, growth in Texas factory output slowed in October as supply-chain bottlenecks. The Texas Manufacturing Outlook Survey’s production index decreased to 18.3 in October from 24.2 in September.