Silver Price Prediction – Prices Rebound Form Bear Flag PatternA surge in copper buoys silver
Silver prices moved higher on Monday after experienced a down week. The rebound was assisted by the rally in copper prices, which surged more than 4% on Monday. The dollar moved lower, which helped buoy silver prices, but the backup in gold prices weighed on the precious metals complex. U.S. Yields moved sideways following a softer than expected new homes sales report.
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Silver prices moved higher on Monday. Support is seen near July lows at 24.75. Resistance is seen near the 20-day moving average of 25.84. Short-term momentum flip-flopped and turned positive as the fast stochastic generated a crossover buy signal. Medium-term positive momentum is negative. The MACD histogram is printing in negative territory with a declining trajectory which points to lower prices. Silver prices broke down this week, closing below trend line support, and during the week, it retraced its losses only to fail at the breakdown level. The consolidation in prices following the breakdown is how a bear flag pattern starts to form.
Home Sales Miss Expectations
New Home sales missed expectations falling to an annualized rate of 676,000, 6.6% below May’s rate of 724,000, and 19.4% below the June 2020 level of 839,000. Expectations were for an increase by 3.4% in June to 795,000. The inventory of new homes for sale jumped from a 5.5-month supply in May to a 6.3-month supply in June. Last fall, it sat at a low of just 3.5 months. In June, the number of homes for sale that had not yet been started hit an all-time high.