Silver Price Prediction – Prices are falling sharply, breaking support and ready to test lower levels
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Silver fell sharply on Friday following a robust US retail sales report. The dollar climbed higher, dragging silver and creating headwinds for the entire precious metals complex. US yields rose but failed to rise significantly despite a much stronger-than-expected US retail sales report. During the week the silver price was down about 1.4%. The U.S. Department of Commerce reported that U.S. retail sales were up 0.6% month-on-month. So far, US retail sales have fallen by 0.3%.
Technical analysis
Silver prices fell sharply on Friday, breaking trendline support and heading for horizontal support near 25.55. Breaking this level would test the March lows at 25.55. Resistance is seen near the 20-day moving average at 6/20. The short term momentum turned negative as the fast stochastics generated a crossover sell signal. The fast stochastic has moved down with a value of 11 and is thus well below the oversold trigger level of 20, which indicates a correction. The medium-term positive momentum is slowing as the MACD histogram prints with a sliding trajectory into negative territory, indicating a consolidation.
Increase in retail sales
Retail sales rose 0.6% last month. A 0.3% decline in retail sales was expected. Sales increased by 18.0% year-on-year. Excluding automobiles, gasoline, building materials, and food services, retail sales rose 1.1% last month. The core retail sales correspond most closely to the consumer spending component of the gross domestic product.
These items was originally published on FX Empire
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