Silver Prices Are Comfortably Trading Sideways
- Silver prices are range trading as Friday’s NFP report was not enough to trigger a break to the stalemate.
- Today, the $17.15 to $17.62 range is keeping silver prices trapped.
- Unfortunately, there is no major market-moving event on deck today, only the U.S. Labor Market Conditions Index.
Friday’s U.S. labor market report did little to end the stalemate in silver prices. The NFP printed 160k vs. the 200K expected as per a Bloomberg News survey, but it was not enough.
Today, the $17.15 to $17.62 range is keeping silver prices trapped and when silver prices range-trade, they tend to continue to do so until a break occurs.
When and if a break occurs, a strong trend might follow as the losing side, following the breakout, quickly adjusts its positions. Which way price may break is hard to know, but if the break is accompanied by a relevant economic news event, this may help form a sustainable break.
Unfortunately, there are no major market moving events on deck today, only the U.S. Labor Market Conditions Index. A Bloomberg economist survey projects an outcome of -1 from -2.1, with more negative outcomes suggesting that the labor market is deteriorating. The next major U.S. report on deck is Thursday’s Jobless Claims.
The next support level below the lower end of the current range is the April 27 low of $17.03, followed by the April 25 low of $16.78. The upper end of the above-mentioned range is the May 5 high of $17.62 and above this level, the next resistance level is the May 3 high of $17.70, followed by the May 2 high of $18.00.
Silver Price | CFD: 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