The price of Silver rose on Monday during the Asian session, increasing the white metal value to more than $14.50 following the release of Nonfarm Payrolls last week. The technical bias however remains bearish because of a Lower Low in the recent downside move.
Technical Analysis
As of this writing, the precious metal is being traded around $14.555. A hurdle can be noted near $14.77, the 38.2% fib level ahead of $15.07, the 50% fib level and then $16.31, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the white metal is likely to find a support around $14.41, the 23.6% fib level ahead of $14.00, the psychological number and then $13.82, the swing low of the last major downside move. The technical bias will remain bearish as long as the $16.31 resistance area is intact.
Nonfarm Payrolls
The U.S. economy generated a solid 211,000 jobs in November, a number that topped expectations and may have turned the final key for the Federal Reserve to hike interest rates later this month. In a much-anticipated report, the Bureau of Labor Statistics said nonfarm payroll growth continued to build on the momentum from October. Wall Street has been watching the employment picture closely for clues as to whether the Federal Open Market Committee and Chair Janet Yellen will sign off on the first rate increase in 9½ years. Fed fund futures were pricing in a 79 percent chance of a rate increase when the FOMC meets Dec. 15-16. The level was little changed from Thursday.
Trade Idea
Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term.
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 making your money go further 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.
