Silver Price Prediction – Prices Edge Higher Following ISM Services Gains
Silver prices consolidated, rebounding for the second consecutive trading session and winding down the week lower by 2%. The dollar whipsawed following mixed employment data. Yields moved lower, taking their cues from the softer than expected headline nonfarm payroll report, which showed smaller-than-expected gains. While the Household survey was strong, ISM services hit an all-time high.
Silver prices consolidated rising for a second consecutive trading session following Thursday’s doji day. 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 23.11. 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 14, below the oversold trigger level of 20.
Services PMI Rises to Record Highs
The ISM Services Report PMI rose to 69.1 in November from 66.7 in October, beating the 65.0 consensus forecast. The index marks an all-time high survey, signals that the U.S. services sector registered a broad-based expansion in November. Nonfarm payrolls temperated these strong gains, which increased by just 210,000 for the month compared to expectations of a rise of 550,000. The unemployment rate fell sharply to 4.2% from 4.6%