Silver Gains as European Stocks Slide
- Silver prices gain following demands for safe haven assets.
- The current rise is corrective in nature given that the overall trend is bearish below the March 31 high of $15.56.
- Economists project that the ISM Non-Manufacturing sector will rise to 54.1 from 53.4.
The current rise amounts to a 50% correction to the decline from the March 31 high of $15.56 to the April 1 low of $14.81. The bulk of this decline occurred following the U.S. NFP publication last Friday.
From a technical point of view, the current rise is seen as corrective given that the overall trend is downward below the March 31 swing high of $15.56.
The trend is bearish as the March 31 swing high of $15.56 is lower than the prior swing high of $16.03, which was formed on March 22.
Support levels are currently at last week’s low of $14.81 followed by the March 1 low of $14.75 and February 29 low of $14.64.
This afternoon, we are looking towards U.S. Trade Balance and ISM Non-Manufacturing reports, with the latter likely to grab most of the attention given that it provides an insight into the important U.S. service sector. Economists predict that the ISM Non-Manufacturing sector will rise to 54.1 from 53.4. Final estimates of Markit U.S. Services are also on deck. See our economic calendar for consensus estimates.
Silver Price | FXCM: XAG/USD
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
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