Silver Price Prediction – Prices Form Doji Day on Indecision

Silver prices moved whipsawed on Wednesday, forming a Doji day which is a sign of indecision. Copper prices rallied and helped buoy silver prices as a sign of stronger industrial growth. The U.S. 10-year yield tumbled on Wednesday, falling 5-basis points. This came despite the meeting minutes released by the Federal Reserve that showed that growth was improving.

Technical analysis

Silver prices whipsawed, forming a Doji day which happens when the open and close are at the same level, which is a sign of indecision. Prices remain above short-term support, which is seen near the 10-day moving average at 26.13. Resistance is seen near the 50-day moving average at 27.06. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated, and positive momentum is poised to turn higher as the MACD (moving average convergence divergence) index is poised to generate a crossover buy signal. The MACD histogram is printing in negative territory with a rising trajectory which points to consolidation.

The Fed Minutes Points to Potential Tapering

The Federal Reserve meeting minutes on June 15-16 showed that the Federal Open Market Committee believed that substantial progress on economic growth has not been met. The Fed that that expected progress to continue. The Fed minutes indicate that the economy has made progress but not substantial enough yet to trigger a taper of the Fed’s bond purchase program. The Fed’s dovish commentary has been priced into U.S. Treasury yields which continued to decline helping to buoy the precious metals complex.