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.
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%.
This article was originally posted on FX Empire