Silver Finally Halts 15-Day Long Losing Streak

Silver stopped the 15-Day long losing streak yesterday with the price of the white metal rising above 14.20, hence closing in the positive territory. The technical bias remains bearish because of a Lower Low in the ongoing wave.

Technical Analysis

As of this writing, the precious metal is being traded around $14.26. A support may be noted near 14.00-14.02, the confluence of Wednesday low as well as psychological number ahead of 13.96, the low of 2015 as demonstrated in the following daily chart.

On the upside, the precious metal is likely to face a hurdle near $14.39, the intraday high of yesterday ahead of 15.00-15.29, the confluence of psychological level as well as key horizontal resistance area.  The technical bias will remain bearish as long as the 16.34 resistance area is intact.

US Jobless Claims

The number of Americans filing for unemployment benefits fell last week, pointing to a fairly robust labor market. Initial claims for state unemployment benefits slipped 5,000 to a seasonally adjusted 271,000 for the week ended Nov. 14, the Labor Department said on Thursday. The prior week’s claims were unrevised.

Claims have now held below the 300,000 threshold for 37 consecutive weeks, the longest stretch in years, and are not too far from levels last seen in the early 1970s. Claims below this level are usually associated with a healthy jobs market.Last week’s drop in claims was in line with economists’ expectations.

Trade Idea

Considering the overall technical and fundamental outlook, buying the white metal around the current levels appears to be a good strategy in short to medium term.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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