Silver extended upside movement on Friday, increasing the price of white metal to more than $13.50 after the release of US nonfarm payroll report. The technical bias remains bearish because of a lower low and lower high in the recent wave on the daily chart.
As of this writing the precious metal is being traded around $16.54. A hurdle can be noted near $17.08, the horizontal resistance area ahead of $18.00, another critical resistance zone. A break and daily closing above the $18.00 resistance area shall incite renewed buying interest, validating an upside rally towards the $19.00 resistance area.
One the down side, the white metal is likely to find a support around $16.25, the intraday low of today ahead of $15.80, the horizontal support zone and then $15.63, the swing low of the last major downside wave. The technical bias shall remain bearish as long as the $17.21 resistance zone is intact.
Nonfarm payrolls grew by 156,000 jobs in December a number that missed expectations but was overshadowed by a sharp gain in wages.Headline unemployment edged higher to 4.7 percent, according to a report Friday from the Bureau of Labor Statistics. Economists had been expecting payrolls growth of 178,000. A broader measure of unemployment that counts discouraged workers and those working part-time for economic reasons edged to 9.2 percent, a fresh 2016 low and the best since April 2008.
Considering the overall technical and fundemantal out put buying the precious metal near current levels appears to be a good strategy I short to medium term.