Silver Intraday: Downside Risks Persist

Last Friday, spot silver was down for a second straight session, erased some gains made earlier in the week.

Downtrend 5

Last Friday, spot silver fell 0.4% on day to $24.61, as the three major U.S. stock indices closed mixed. The white metal was down for a second straight session, erased some gains made earlier in the week.

This week, investors would focus on the U.S. September durable goods orders (+0.5% on month expected) and October Consumer Confidence Index (101.9 expected), both due on Tuesday. Also, the first estimate of U.S. 3Q annualized GDP will be released on Thursday (+31.8% on quarter expected).

From a technical point of view, spot silver's downside risks persist as shown on the 1-hour chart. Currently, it has broken below a rising trend line drawn from October 6, while the 20-period and 50-period moving averages have turned downward. The level at $24.86 might be considered as the nearest resistance, with 1st and 2nd support expected to be located at $23.95 and $23.55.

Source: Gain Capital, TradingView

Build your confidence risk free

More from Silver

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.