Silver Price Prediction – Prices Rebound as the Dollar Eases
Silver prices rebounding off support levels as the dollar eased and U.S. yields continued to gring downward. The risk-off trade took a breather on turn-around Tuesday, allowing silver prices to gain traction as the dollar finally eased. Gold prices rebounded for a second straight trading session allowing silver prices to gain a toe hold. Prices were oversold, and the technicals point to a relief rally. Housing starts advanced 3.9% to an annual rate of 1.615 million units last month, the Commerce Department said on Tuesday.
Technical analysis
Silver prices rebounded from key support levels seen near the August and December lows at 21.95. If prices are able to close above this level for consecutive days it will likely generate a bounce from an oversold condition. Prices remained below resistance seen near the 10-day moving average, at 23.33. Target support is seen near the August lows at 22.10. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 18, below the oversold trigger level of 20, which could foreshadow a correction.
Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover signal. This sell signal 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 negative territory with a downward sloping trajectory which points to lower prices.
This article was originally posted on FX Empire
