Silver extended upside movement on Monday, increasing the price of white metal to more than $16.50 after the release of US nonfarm payroll report. The technical bias remains bearish because of a lower low and lower high in the recent wave on the daily chart.
Technical Analysis
As of this writing the precious metal is being traded around $16.50. A hurdle can be noted near $17.08, the horizontal resistance area ahead of $18.00, another critical resistance zone. A break and daily closing above the $18.00 resistance area shall incite renewed buying interest, validating an upside rally towards the $19.00 resistance area.
One the down side, the white metal is likely to find a support around $16.25, the intraday low of today ahead of $15.80, the horizontal support zone and then $15.63, the swing low of the last major downside wave. The technical bias shall remain bearish as long as the $17.21 resistance zone is intact.
US Employment News
The number of jobs added in the US missed expectations in December, although the run of relatively solid economic data continued ahead of the Federal Reserve’s next meeting to decide monetary policy in February. The final non-farm payroll data under President Barack Obama showed an increase of 156,000 jobs in the month, after rising by a revised figure of 204,000 the month before, according to the US Department of Labor.
Meanwhile, the unemployment rate rose slightly to 4.7 per cent, up from 4.6 per cent in November, while wages swung back into growth of 10 cents, a 0.4 per cent rise after dipping by two cents last month.
Trade Idea
Considering the overall technical and fundamental outlook, buying the precious metal near current levels appears to be a good strategy I short to medium term.
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