Silver Price Prediction – Prices Surge Rise 4.8% for the Week

Silver prices continued to rally on Friday finishing the week up 4.8% after rallying shparply to a three-month high and forming a reverse head and shoulder pattern. The dollar eased and so did U.S. Treasury yields following a surge during most of the week following stronger than expected inflation data. The quit rate which describes the rate at which people are leaving their jobs rose to the highest level on record.

Technical analysis

Silver prices rallied after breaking out on Thursday through trend line resistance. Prices have formed a reverse head and shoulder pattern which is a bottoming breakout pattern. Support is seen near the 10-day moving average at 24.30. Target resistance is the August highs at 26. Short-term momentum has turned positive as the fast stochastic generates a crossover buy signal. Prices are overbought asw the fast stochastic is printing reading of 97, above the overbought trigger level of 80. Medium-term momentum has also 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 line). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

The Job Opening and Labor Turnover Survey, or JOLTS report showed that the number of available positions slipped to 10.4 million, just shy of a record high. The quits rate, or percentage of workers leaving their jobs, was 3%, also an all-time high. The Labor Department reported that in the United States, the total number of quits rose by 164,000 in September to a record-high 4.4 million.

This article was originally posted on FX Empire