Silver: Technical Rebound Continues

Silver is extending its technical rebound as market sentiment improved and the U.S. dollar softened...

Uptrend 2

On Monday, the three major U.S. stock indices rebounded as economic data came better than expected. The U.S. ISM Services Index climbed to 57.8 in September (56.2 expected) from 56.9 in August, indicating that the service sectors growth has accelerated. Silver, which can be used for industrial production, was lifted by improved market sentiment and a weaker dollar.

From a technical point of view, spot silver is extending its technical rebound as shown on the 1-hour chart. Previously, the RSI showed a bullish divergence and the white metal is now supported by a rising trend line drawn from its previous low. The level at $23.60 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $25.25 and $25.80 respectively.

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.