Yahoo Finance Silver Price Prediction – Prices Fall Following Moving Average Crossover
Silver prices continued to break down, dropping nearly 3%. The dollar whipsawed following a more robust than expected ADP Private payroll report. Powell and Yellen were both on the hill for their second day of testimony. Yields were mixed, which flattened the curve. The two-year yield continued to rise while the 10-year sold off.
Technical Analysis
Silver prices continued to trend lower accelerating sharply following Tuesday break down. Prices are poised to test target, support is seen near the September lows at 21.42. Resistance is seen near the 10-day moving average at 23.56. The 10-day moving average has crossed below the 50-day moving average which mean a short-term downtrend is now in place. Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Prices are oversold as the fast stochastic is printing a reading of 1, below the oversold trigger level of 20.
Private payrolls increased by 534,000 in November, better than the expected 506,000. ADP reported that the rise showed deceleration from the October growth of 570,000, which was revised lower by 1,000. Big business led job creation by company size. The industry that includes bars, restaurants, hotels and similar businesses saw a gain of 136,000, part of the 424,000 positions added in the services sector.
This article was originally posted on FX Empire
