Silver Poised for More Downside Movement Amid Strong Durable Goods News

Share news

Silver extended downside movement on Friday, dragging the price of white metal to less than $15.20 an ounce following the release of some key economic news. The technical bias remains bearish because of a Lower High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around $15.11. A support can be seen near $15.00, the confluence of psychological number as well as intraday low of yesterday ahead of $14.91, the low of the recent downside move and then $14.63, the horizontal resistance turned support area as demonstrated in our daily chart.

2

On the upside, the pair is likely to face a hurdle near $15.30, the intraday high of yesterday ahead of $15.56, the swing high of the bearish pin bar candle which was emerged earlier this week and then $16.00, the psychological number.

US Durable Goods Data

New orders for long-lasting goods manufactured in the United States rose in January as demand picked up broadly, offering a ray of hope for the downtrodden manufacturing sector. The Commerce Department said orders for durable goods, items as varied as toasters or aircraft meant to last three years or more, surged 4.9 percent last month, reversing December’s 4.6 percent plunge. The increase in January was the largest since March 2015. The durable goods report was the latest indication that the worst of the manufacturing downturn was probably over. Manufacturing output rose solidly in January, and factory payrolls that month increased by the most since August 2013.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term

Trade global forex with the best ECN broker of 2021*. 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, best ECN broker of 2021, according to the IAFT

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. FXOpen UK: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
FXOpen EU: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.