Silver Price Prediction – Prices Slip Forming Bear Flag Pattern
Silver prices edged lower on Tuesday and continue to form a bear flag pattern. On Tuesday, the dollar rose sharply as the risk-off trade gained traction, which weighed on the entire precious metal complex. U.S. Yields moved lower, following weaker than expected Homebuilder sentiment and retail sales that were released for July. Industrial production for June was stronger than expected.
Silver prices slipped on Tuesday after running into resistance near the March lows at 23.78. Prices continue to form a bear flag continuation pattern which is a pause that refreshes lower. Target support is seen near the August lows at 22.10. Short-term momentum has turned negative as the fast stochastic generated crossover sell signal. Medium-term negative momentum shifted negatively as the MACD (moving average convergence divergence) histogram prints in negative territory with a downward sloping trajectory which points to lower prices.
Homebuilder Sentiment Drops
Sentiments among single-family homebuilders dropped 5 points to 75 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. The index stood at 78 last August. Of the index’s three components, current sales conditions fell 5 points to 81 and traffic of prospective buyers also fell 5 points to 60. Sales expectations in the next six months were unchanged at 81. Separately, Retail sales for the month fell 1.1%, worse than the 0.3% decline expected and below the upwardly revised 0.7% increase in June.