Silver prices moved lower but rebounded from session lows. The dollar rallied, which weighed the precious metals complex. Gold prices fell, which generated headwinds for silver prices. Yields were mixed despite as stronger than expected PMI data from Chicago, which was offset by weaker than pending home sales.
Silver prices edged lower and slipped through support, now resistance which is seen near the 10-day moving average at 24.04. Support is seen near the 50-day moving average at 23.39. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
Pending Home Sales Fall
According to the National Association of Realtors, pending home sales, which are a measure of signed contracts, fell an unexpected 2.3% in September compared with August. Analysts were predicting a slight monthly gain. Sales were 8% lower compared with September 2020.
This article was originally posted on FX Empire