Silver extended upside movement on Monday, increasing the price of white metal to more than 16.80 an ounce as bulls gain strength. The technical bias remains extremely bearish because of a lower low and lower high in the recent downside move.

Technical Analysis

As of this writing, the precious metal is being traded near $16.83 an ounce. A hurdle can be seen around $17.00-$17.09 an ounce, the confluence of psychological number as well as a major horizontal resistance area as demonstrated in the given below daily chart. A break and daily closing above the $17.09 resistance shall incite renewed buying interest, validating a move towards $18.50 resistance zone.

On the downside, the precious metal is expected to find a support near $16.44, the low of today ahead of $16.16, the swing low of the recent downside move and then $16.00, the psychological number. The technical bias shall remain bearish as long as the $18.89 resistance area is intact.

US Goods Trade Balance

The US seasonally-adjusted goods trade deficit for October increased to $62.0bn from $56.5bn in September and was above expectations of a $59.2bn deficit for the month. The October deficit was also slightly above the $61.6bn deficit seen in October 2015. Exports declined 2.7% on the month with a 0.4% annual decline, which will cause some concerns over underling trends, although monthly data will inevitably be volatile. Overall imports increased 1.1% on the month and were unchanged from the previous year. There was a 1.9% increase in capital goods imports for the month, while auto shipments declined 2.1%.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal near $17.09 an ounce appears to be a good strategy if we get a valid bearish reversal candle near that level.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.