David Becker
Add to Bookmarks

Silver prices dropped sharply on Monday following a robust decline on Friday. The dollar edged higher, weighing on silver and generating headwinds for the entire precious metals complex.  U.S. Yields moved lower as investors moved into safe-haven assets.  The Home Builders index edged slightly lower, which paved the way for lower yields.

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Technical analysis

Silver prices dropped sharply on Monday for the second consecutive trading position slicing through trend line support and headed to a horizontal support line seen near 25.55. A break of this level would lead to a test of the March lows at 23.86. Resistance is seen near the 20-day moving average at 20.02.  Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The fast stochastic has moved lower, printing a reading of 6, well below the oversold trigger level of 20, foreshadowing a correction. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) generated a crossover sell signal. This 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).


U.S. Homebuilder Buyer Traffic Dropped

The combination of higher construction costs and the spread of the delta variant of COVID eroded Homebuilder confidence. The National Association of Home Builders dropped 1 point to 80 in July. The index stood at 72 in July 2020. The index hit a record high of 90 in November of last year.While lumber prices have fallen by more than 50% in the lumber futures market, those savings have not yet trickled down to builders, remodelers or consumers.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker