Silver Price Prediction – Prices Retrace but Remain in an Uptrend

Silver prices edged lower, falling back to Wednesday’s breakout level as the dollar moved higher. Gold prices were also softer, which weighed on the entire precious metal complex. U.S. yields were strong, with both the 2-year yield and the 10-year yield rising. More robust than weaker than expected Leading Indicators somewhat offset expected U.S. jobless claims.

Technical analysis

Silver prices edged lower, but held Wednesday breakout level at an upward sloping trend line that comes in near 24.08. Resistance is seen near the September highs at 24.88. The 10-day moving average crossed above the 50-day moving average which means a short-term uptrend is about to be in place. Short-term momentum has turned negaitve as the fast stochastic generated a crossover sell signal. Prices remain overbought with the fast stochastic printing a reading of 82, above the overbought trigger level of 80 which foreshadows a correction. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher silver prices.

Leading Indicators Slip

The Conference Board reported that its index of leading indicators grew by 0.2% in September and pointed toward somewhat slower growth. The U.S. LEI rose again in September, though at a slower rate, suggesting the economy remains on a more moderate growth trajectory compared to the first half of the year.