Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Silver Price: More Sellers To Step In On a Break To The $15.20 Low

Silver Price: More Sellers To Step In On a Break To The $15.20 Low

Alejandro Zambrano, Market Analyst

Share:

Silver prices remain soft as the U.S. Dollar keeps gaining. The very short-term trend is a downward one, below yesterday’s high of $15.45 and we may still reach the psychological level of $15.

It’s worth noting that gold prices have dropped sharply this week and are trading at $1,118. The relationship between gold and silver prices during 2015 dictates that silver should be trading closer to $14.95. This is based on a simple linear regression model using daily prices.

From a technical point of view, a break to yesterday’s low of $15.19 will bring these assets more in line with the linear regression model estimation.

An actual breakout and survival of the last few days bearish silver trend will depend on two key risk events. U.S. ADP employment change and U.S. ISM services. Both are on tap this afternoon and they will probably need to meet expectations for silver to remain bearish.

Upcoming Risk Events (GMT)

  • 13:15 U.S. ADP Employment Change, est. 180k
  • 13:30 U.S. Trade Balance, est. -$41b
  • 14:45 U.S. Markit US Services PMI (Final), est. 54.5
  • 15:00 U.S. ISM Non-Manf. Composite, est. 56.5

Silver Prices: Bearish Below $15.45 and I assume that price will slide on a break of $15.19

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

.

Data Source: Bloomberg, Own Estimations

--- Written by Alejandro Zambrano, Market Analyst

To contact Alejandro Zambrano, e-mail azambrano@dailyfx.com

Follow him on Twitter at @AlexFX00

To be added to Alejandro’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES