Silver Price Forecast – Prices are recovering this week, but the trend remains on the downside

Silver prices continued to consolidate and move in a very narrow range that formed a continuation of the bear flag pattern. The dollar also moved sideways, forming a doji day which is a sign of indecision. US Treasury bond yields rose, limiting the upward movement of the precious metals complex. For the week, silver prices rebounded a slight 0.93% after falling 7.6% the previous week.

Technical analysis

Silver prices rose again and approached lows after testing higher levels during the trading session. The sideways price movement forms a bear flag pattern. This type of pattern is a break that is updated downwards. Support near an upward sloping trendline near 25.17. Resistance is seen near the 10-day moving average at 26.37. The 10-day moving average is expected to fall below the 100-day moving average, which means that there is a short-term downtrend. The short-term momentum has turned positive as the fast stochastics generated a crossover buy signal. The fast stochastic also prints a value of 17, below the oversold trigger level of 20, which could anticipate a correction. The medium-term momentum is negative as the Moving Average Convergence Divergence (MACD) histogram prints in the red, but the trend is positive, indicating a consolidation.

Consumer spending was flat

According to the Department of Commerce, consumer spending was up 0.4% in May, up from its estimate. In addition, personal income fell 2%, less than the expected 2.7% decrease. The Department of Commerce reported that personal consumption expenditure was 3.4% year over year. The core PCE index rose 0.5% over the month, which was actually below the 0.6% estimate. Including volatile food and energy prices, the PCE index rose 3.9% yoy.