Silver Price Prediction – Silver Rise on Dollar Weakness but Fails to Break Resistance
Silver prices moved higher but were unable to push through key resistance. Copper prices also higher as the dollar dropped giving a buoy to the commodity sector. Since most commodities are quoted in U.S. dollars, a decline in the greenback is generally positive for silver. U.S. yields rebounded from their recent slump as the short-squeeze in bonds looks like it has played its course.
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Technical analysis
Silver prices moved higher on Friday but were unable to purchase the key resistance near the 10-day moving average of 26.13. Support on silver is seen near an upward sloping trend line that comes in near 25.69. Additional resistance is seen near the 50-day moving average at 27.06. The daily chart appears to have formed a triple top which will generate headwinds for prices. Short-term momentum flip-flopped and turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum has decelerated and appears neutral. The MACD histogram is printing in the negative territory near the zero index level with a flat trajectory which reflects consolidation.
Wholesale Sales Rise
May 2021 sales of merchant wholesalers, were $576.5 billion, up 0.8% from the revised April level and up 36.8% from the revised May 2020 level. Wholesale inventories were up $709.8 billion in May at up 1.3%. Including manufacturers’ sales branches and offices, total inventories were up 8.2% from the revised May 2020 level. April 2021 to May 2021 percent change was revised from the advance estimate of up 1.1% to up 1.3%.