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Silver could form a Possible Bearish Cross

Silver

Looking at the spot silver futures contract, the one hundred and two hundred (100, 200) day simple moving averages look to be converging. This would be a formation of a bearish cross which could bring more losses for the white metal.

Today’s key event for precious metals including the spot silver futures contract is the upcoming European Central Bank monetary policy and interest rate decision. The European Central Bank is unlikely to change monetary policy settings.

Members who sit on the European Central Bank Governing Council have been discussing when to start easing back on asset purchases and normalization of monetary policy. After the ECB announces their monetary policy for the month, ECB President Christine Lagarde will hold a key press conference.

Also on the economic calendar on Thursday, the U.S. Labor Department will publish weekly initial and continuing jobless claims. After the lackluster August non-farm payroll report, financial market traders will look at these numbers carefully.

After the widespread damage from hurricane Ida ten days ago in the Gulf of Mexico and in Louisiana, weekly crude oil inventory levels and active rig count will also be of importance today. Germany will release their monthly trade balance and the United Kingdom will release monthly RICS housing balance data.  

Daily Spot Silver Technical Analysis (XAG/USD)

Looking at the above daily MT 4 price chart, silver has fallen lower from where the short-term fifty day simple moving average meets a two month old falling trend line. The technical indicators are also looking weak, which could bring more losses for the (XAG/USD) spot contract.

Key technical support lines up at $24 per ounce with the next downside barrier coming into play near the yearly low price at $22.15. The 20 August low price lines up at $22.90. On the upside, the 50 day simple moving average and falling trend line lines up at $24.75.

The next upside barrier lines up at $25 per ounce with the 100 and 200 day simple moving averages lining up around $25.92-93 per ounce.  

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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