Silver prices rallied on Thursday after ending a 5-day winning streak on Wednesday. The dollar rallied but failed to weigh on silver prices. Gold prices edged lower but did not hamper the upward bias in silver prices. U.S. yields were down across the curve, despite a stronger than expected U.S. jobless claims report.
Technical Analysis
On Thursday, silver prices rallied but remained in a wide range. Resistance is seen near the 50-day moving average at $23.45. Support is seen near the 10-day moving average at 22.71. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario 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 an upward sloping trajectory which points to higher prices.
Continuing Claims Retrace to Pre-pandemic Levels
On Thursday, the Labor Department reported that continuing claims, the data for which runs a week behind the headline number of Jobless claims, dropped by 140,000 to 1.72 million, the lowest level since March 7, 2020, just before the Covid pandemic declaration. The move down to 1.72 million in continuing claims puts the labor market back in a consistent range with the average continuing claims figure seen in 2019.
This article was originally posted on FX Empire