For today, let’s lean to the upside because of the early strength. Look at the 50-day MA at $76.10 as a potential breakout level with the swing top at $78.83 the first objective. If this level is taken out by buyers hitting offers then the market has a chance to rally to $83.61 over the near-term.
Our bullish outlook relies on traders continuing to support the Fib level at $74.63. If this fails, sellers will have a clear shot at a dump to $71.84 to $70.86. This is the last major support area before the major support, the 200-day moving average at $67.14.
What to Watch
Two things are keeping Spot Silver (XAGUSD) bid right now. The U.S. Dollar Index is soft. The 10-Year U.S. Treasury yield is pulling back. Take either one of those away and the rally stalls. Friday’s employment report is the event that could do it. A hot number firms up the dollar and pushes yields higher in the same session. That would erase the conditions that made today’s move possible.
The chart is sitting right on top of the 50-day moving average at $76.10. That is the breakout level. Get above it with conviction and the swing top at $78.83 is first with $83.61 after that. The problem is the same one the technical section flagged. Buyers keep bidding for dips but nobody wants to take out offers. $74.63 is the trap door. Every passive buyer who accumulated on dips is sitting above that level. Break it and they all become sellers at the same time. $71.84 goes first. Then $70.86. Then the 200-day moving average at $67.14 and there is nothing between here and there that slows the fall down.
More Information in our Economic Calendar.
