Silver extended upside movement on Thursday, increasing the price of white metal to more than $17.50 an ounce following the release of some key economic news. The technical bias remains bullish because of a higher high in the ongoing upside move.

Technical Analysis

As of this writing, the precious metal is being traded near $17.78 an ounce. A hurdle can be noted around $17.86, the 50% fib level ahead of $19.00, the confluence of psychological number as well as swing high of the last major upside rally. A break and daily closing above the $19.00 resistance area shall incite renewed buying interest, validating a move towards $25.00 an ounce.

On the downside, the precious metal is expected to find a support around $17.36, the trendline support area ahead of $17.00, the psychological number and then $15.62, the swing low of the last major downside move as demonstrated in the given above daily chart. The technical bias shall remain bullish as long as the $15.62 support area is intact.

US Initial Jobless Claims

The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, amid a further tightening of the labor market that could eventually spur faster wage growth. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 234,000 for the week ended Feb. 4, the Labor Department said on Thursday. That left claims just shy of the 43-year low of 233,000 touched in early November. Claims have now remained below 300,000, a threshold associated with a strong labor market, for 101 straight weeks. That is the longest stretch since 1970, when the labor market was much smaller.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy.