Silver extended upside movement on Thursday, increasing the price of white metal to more than $16.90 an ounce following some key economic events. The technical bias remains bearish because of a lower low and lower high in the recent wave.
As of this writing, the white metal is being traded around $16.92 an ounce. A hurdle can be noted near $17.00, the psychological number ahead of $17.08, a major horizontal resistance area and then $18.01, another critical resistance zone as demonstrated in the given below daily chart.
On the downside, the precious metal is expected to find a support around $16.16, the horizontal support area ahead of $16.00, the psychological number and then $15.80-$15.63, a cluster of various support levels. The technical bias shall remain bearish as long as the $17.22 resistance area is intact.
Trump has been credited with being a major catalyst behind the impressive rally in silver since election day in the dollar and stocks, although he has yet to outline his economic policies in detail. He will officially take office on January 20. The precious metal has been well-supported in recent sessions after minutes from the Federal Reserve’s December meeting unsettled investors’ expectations about the pace of future interest rate hikes. Meanwhile, the Fed had indicated in December that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot.
Considering the overall technical and fundamental outlook, buying the silver on dips appears to be a good strategy in short to medium term.