Silver price traded higher this week against the US Dollar, and it looks like buying the silver metal moving ahead may be a good idea.
Silver Weekly Forecast – Price Is In Uptrend?
- Silver price is trading positively against the US Dollar and looks set for more gains.
- There is a major support trend line formed on the 4-hours chart of Silver, which can be considered as a buy area.
- The $25.00 level on the downside holds the key for more upsides in the near term.
Silver Technical Analysis
There was a nice upside ride in Silver price versus the US Dollar, as it traded close to the $26.20 level where sellers appeared and presented offers. The price is currently correcting lower, but approaching a support area.
On the downside, there is a major support trend line formed on the 4-hours chart of Silver. It can provide bids if the price corrects lower further.
Moreover, the 38.2% Fib retracement level of the last wave from the $24.23 low to $26.19 high is also around the trend line support area. So, we can consider it as a strong barrier for sellers and a buy zone.
Sell Idea – Buying Silver around the trend line may be considered with a stop below it.
Chinese Economic Data
Recently, there were a few important economic releases in the US and China. The reports in the US failed to meet the market expectation, which ignited a downside reaction in the US Dollar. As a result, Silver price was benefited.
Today, China saw a couple of important economic releases, including the CPI and PPI. The Consumer Price Index was published by the National Bureau of Statistics of China. As per the report, the measure of retail price variations within a representative basket of goods and services increased by 0.1% in August 2016. However, it was on the lower side compared with the market expectation of 0.3%.
Similarly, the Producer Price Index also failed to impress with a decline of 0.8%. These disappointing readings are pushing Silver price down. However, as long as the price is above the trend line, it remains supported.