Silver Price Prediction – Prices Rebound but Face Headwinds
Short-term momentum flips positive
Silver prices rebounded on Wednesday after falling below trend line support earlier in the week. The dollar moved lower, which failed to buoy gold prices, but copper gained a foothold as concerns over the spread of the virus disappeared slightly. U.S. Yields were mixed following the U.S. 20-year auction, where the yield needed to rise to gain buyers.
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Technical analysis
Silver prices dropped rebounded on Wednesday after falling for three consecutive trading sessions. Target support is seen near a horizontal line seen near 23.86. Resistance is seen former support near $25.55. Additional resistance is seen near the 20-day moving average at 25.95. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The fast stochastic has moved up from printing a reading of 6, to 22 above the oversold trigger level of 20, reflecting positive momentum. 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). The MACD histogram is printing in negative territory with a sliding trajectory which points to lower prices.
