Advertisement
Advertisement

Silver Price Prediction – Prices Slip Trading in a Sideways Range

By:
David Becker
Updated: Nov 18, 2021, 19:21 UTC

Falling jobless claims fail to buoy the dollar

Silver Price Prediction – Prices Slip Trading in a Sideways Range

Silver prices edged lower and continue to consolidate, forming a continuation pattern.  The dollar moved lower as yields pulled back. Unemployment claims continue to decline, but the mixed data put downward pressure on yields. Nearly all of the Special pandemic-related emergency programs ended in September, but that left saw a huge runup in the last week of October.

Technical analysis

Silver prices slipped Thursday. Prices have formed a reverse head and shoulder pattern, and then a bull flag pattern, a continuation pattern from a bottoming breakout pattern. Support is seen near the 10-day moving average at 24.79. Target resistance is the August highs at 26. Short-term momentum has flip-flopped and turned negative as the fast stochastic generates a crossover sell signal. Medium-term positive momentum is decelerating as the histogram is printing in positive territory with a sliding sloping trajectory which points to consolidation

Initial Employment Data Continues to Impress

The Labor Department reported that U.S. jobless claims totaled 268,000, a decline of 1,000 from a week ago. Expectations were for claims to fall to 260,000. The total was the lowest since the beginning of the pandemic. The four-week moving average declined to 272,750t. Continuing claims, which counts the number of individuals accepting claims for 2-weeks or more, declined by 129,000 to 2.08 million, a pandemic-era low dating back to March 14, 2020.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement