Silver Prices For Doji Day Ahead of Head

Key Insights

• Silver prices formed a Doji day.
• Treasury yields consolidated ahead of the Fed Meeting.
• Gold prices rebounded slightly.

Silver prices were nearly unchanged on Tuesday, closing near the open. The dollar consolidated ahead of the Fed decision. The Fed finishes its two-day meeting on Wednesday. Expectations are that the Fed will increase its benchmark Fed Fund rate by 50-basis points.

The Labor Department reported that employment openings exceeded the level of available workers by 5.6 million in March. Quits totaled 4.54 million, an increase of 152,000 from the previous month. The Jobs Opening and Labor Turnover report that the job postings hit 11.55 million for the month, a record for data back to December 2000. That was up 205,000 from February.

Technical Analysis

Silver prices rebounded on Tuesday and formed a Doji. A Doji is a sign of indecision as the close and open are at the same levels. Support is seen near the February 2022 lows near $22.00. Resistance is seen near the 200-day moving average of 23.78.

Short-term momentum has turned positive as the fast stochastic generates a crossover buy signal. Prices are oversold as the fast stochastic prints a read of 13 below the oversold trigger level of 20. The RSI is printing a reading of 27, below the oversold trigger level of 30.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.