Silver Swings ContinueSilver remains under pressure, as the pair flirts with January lows. Will the downward trend continue, or will silver rebound back to the 18.00 level?
Silver prices are slightly lower in Thursday trade. Currently, silver is trading at $17.67, down $0.11 or 0.61% on the day.
Silver Looking Upwards at Key 18.00 Level
It’s been a busy week, as silver prices continue to show sharp swings. Silver has declined close to 2.0% this week and is on track for its sharpest one-week decline since early December. Still, for all the noise that silver is making, the psychologically-important 18.00 level remains close by. Silver appears unwilling to venture very far from this key level and I do not expect that trend to change in the very near future.
Investors haven’t had much to look at in the way of U.S. indicators, but some key releases before the end of the week will be helpful in assessing the health of the U.S. economy. First off, unemployment claims will be released later on Thursday. The indicator sparked last week, falling to 204 thousand, which was its lowest level in six weeks. The forecast for the upcoming release stands at 214 thousand. On Friday, it’s the turn of manufacturing and services PMIs. It should be noted that both indexes have been accelerating in recent months, indicative of stronger expansion in the manufacturing and services sectors.
Silver Technical Analysis
Silver prices are pressing downwards, but there are formidable support levels close by which could prevent the metal from falling further. The 50-EMA line is situated at 17.62, followed immediately by support at 17.50. Given that silver has plenty of support nearby, we could see a recovery back to the 18.00 line or slightly above it. There is resistance at 18.60, followed by resistance at the round number of 19.00.