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Spot Silver is Under Heavy Selling Pressure

Spot silver

The spot silver futures contract remains under heavy selling pressure headed into Thursday. Silver is trading near $27.70 per ounce. For now price action remains well within the bearish chart formation. This is the rising wedge pattern seen on the above MT four chart.

Commodity traders, especially those who trade the precious metals like spot gold and silver will be watching the European Central Bank today. The ECB will announce their June monetary policy and interest rate decision today.

The European Central Bank will also publish their monetary policy statement. ECB President Christine Lagarde is scheduled to hold a press conference. As far as euro area economic data is concerned, France and Italy will release monthly industrial production numbers.

The United Kingdom will publish minor housing data. Spot silver will be taking a keen interest with the U.S. economic calendar today, as well. The world’s largest economy is releasing their monthly core and headline consumer price index (CPI). The U.S. Labor department will publish both their weekly initial and continuing jobless claims for the week ending 4 June.

Daily Spot Silver Technical Analysis

Silver (XAG/USD) is trading below a falling trend line in play since the beginning of June. Price action is also below the key upside barrier in play at $28 per ounce. Also of note, the MACD histogram is lifeless and not signaling any firm price direction.

With that said, a daily close below $27.55 per ounce opens the door for $27 per ounce. The 200 hour simple moving average is just above $27 at $27.35 per ounce. There is also the 13 May closing price point at $27.05 per ounce.

On the upside, a sustained close above $28 per ounce opens the door to challenge the top of the rising wedge formation in play at $28.10 per ounce. The next layer of technical resistance is in play at $28.20 per ounce with the May monthly high price at $28.75 then coming into focus.

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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