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Spot Silver Looks to Extend Thursday’s Sharp Gains

Spot silver

The spot silver futures contract is trying to extend Thursday’s solid gains as we head into the last trade day of the week. Price action is trading around $27.30 per ounce during the Asian trade session. This is near the highest price level since 26 February.  

Today is all about key labor data out of the U.S. Labor Department. The United States will publish their closely scrutinized monthly non-farm payroll report (NFP). This release will also include the monthly unemployment rate and average hourly earnings.

The important metric to watch is the labor participation rate. This metric gauges whether or not Americans are returning or staying out of the labor market.

The euro area calendar is also busy. Italy will release monthly retail sales. Germany and France will publish monthly industrial production and trade balance data and the United Kingdom will publish their monthly construction purchasing managers’ index (PMI).

Daily Spot Silver Technical Analysis                    

Looking at the daily technical analysis on the above daily spot silver MT 4 chart, price action is trading near the top of the rising price trend channel. The 14 day momentum indicator, or MACD histogram, is looking positive for spot silver buyers as well.

This could mean that buyers could challenge the upside barrier in play at $27.55 per ounce. A daily close above this level will open the door to challenge the next layer of technical resistance at $28 per ounce. The 23 February high price lines up at $28.35 per ounce. The yearly high price at $30 per ounce then comes into play.

On the downside, the first layer of technical support lines up at $27 per ounce. There is a horizontal support level lining up at $26.65 per ounce. He rising trend channel support lines up at $26.15 with the one hundred (100) hour simple moving average coming into play at $26.10 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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