Silver ticked up to $16.97


Commodities have perked up a bit so far today. Gold peaked at $1,301.30 in early N.Y. trade after basing at $1,295.60 overnight, while Silver ticked up to $16.97 after basing at $16.80 overnight. Hotter PPI data earlier was supportive, though a likely 25 basis point Fed rate hike today has already been priced in. Key for Gold and Silver will be the tone of the FOMC press conference, and signals the Fed gives as to future policy tightening.

Until FOMC however, the buyers seems to enter the XAGUSD cross, despite the fact that the Greenback has been trading mixed so far today as markets anticipate the Fed policy announcement.

In the 1-hour chart, Silver broke the peak identified the last 2 consecutive Days at $16.93. This level is the highest since March 24.  Hence XAGUSD is up by  0.8%  so far today, while after crossing above the 20-period MA earlier, it is currently extending the upper Bollinger Bands pattern to the upside. An extreme indecision however has been identified in the last hour, as a Gravestone Doji candle has been formed, which might be interpret as an oversold sign or a possible correction to the downside of today’s up swing.

Oppositely, technical momentum indicators support a positive momentum for the asset, as RSI just crossed 70 barrier with further space to the upside and MACD oscillator increases into positive territory above its signal line. Next intra-day Resistance level is at the $17.15 and Support is at PP level at $16.85.

The Bullish movement holds, quite strongly in the daily time-frame, as price is traded above 200-DAY SMA for 3 Consecutive sessions, while it is in an uptrend since June 4 . Next support level is set at $16.60, at week’s low.

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Andria Pichidi

Market Analyst


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