Silver Price Prediction – Prices Consolidate and Form Doji Day

Silver prices consolidated, forming a doji day after falling 3% on Wednesday. The dollar whipsawed following better than expected jobless claims reports. Yields still move higher on the back of Tuesday and Wednesday testimony by Powell and Yellen.  Higher yields continue to generate headwinds for silver prices.

Technical Analysis

Silver prices consolidated forming a doji day where the open and the close are at the same level which is is a sign of indecision. For the bulls, the end of the selling might be near., Prices are poised to test target, support is seen near the September lows at 21.42. Resistance is seen near the 10-day moving average at 23.23. The 10-day moving average has crossed below the 50-day moving average which mean a short-term downtrend is now in place. Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Prices are oversold as the fast stochastic is printing a reading of 5, below the oversold trigger level of 20.

Continuing Claims Continue to Trend Lower

Continuing claims, which are insurance claims for longer than one week fell by another 107,000 and are now below 2 million for the first time since the early days of the pandemic. The last time continuing claims, which ran a week behind the headline, were lower than the current 1.96 million, was March 14, 2020.