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 Prices: Waiting For a Breakout

Silver Prices: Waiting For a Breakout

Alejandro Zambrano, Market Analyst

Share:

Silver trading has been sluggish since the start of the week and price remains trapped between the February 10 low of $15.11 and the February 16 high at $15.46.

Sluggish trading is not uncommon for silver and shouldn't be seen as bad. Because when a breakout occurs the move tends to be explosive.

The Levels To Watch

A break to the upper end of this range (the $15.46 high), may open the door for a rally to the February 12 high of $15.79, while break to this level opens for a rally to the current yearly high at $15.97.

Soft stock markets and a weak U.S. Dollar supports a boost to silver prices. While a major reversal in these markets would suggest lower silver prices.

On a breach to the lower limit at $15.11 the price may drop to the February 5 low of $14.62. Also as mentioned in yesterday's outlook, silver maybe in the process of carving out a major ‘Head and Shoulders’ pattern with the price reaching $14.25. For more and this please read yesterday's outlook.

Macro Data On Deck

Today at 13:30 GMT, a Bloomberg poll projects U.S. Jobless Claims to rise from 269k in the prior week to 275k. A lower than expected outcome implies less people are applying for unemployment benefits, which to some extent suggests that the U.S. labor market is doing better than expected. This may boost the Dollar and soften silver. While a higher than expected outcome may have the opposite effect on silver. The Philadelphia Fed index is also on tap and projected to print -3 from -3.5.

Download the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

Silver Prices | FXCM: XAG/USD

Please add a description for the image.

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

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

Struggling with Trading? Join a London Seminar

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

DISCLOSURES