Silver, like gold, has also proved quite volatile of late. Last Thursday morning, it broke below $72 per ounce, only to bounce and then briefly top $77 earlier this morning. The bulls should take some encouragement from this morning’s price action.
Since Thursday evening, silver had repeatedly bumped up against resistance at $76. Then yesterday afternoon, it looked as if the bulls had capitulated as silver suddenly plunged to below $74. But this proved to be an opportunity for the bulls, who not only came in to support the $74 region but then drove silver straight up above resistance at $76, which, so far, has held as support.
The daily MACD continues to trend sideways just under the neutral line. This isn’t providing any clues as to where prices may go next. Instead, investors have kept a close eye on the US dollar, which has done much to influence price movements recently. The question is whether this inverse correlation is set to continue, or if silver can break free and do its own thing.
Source: TN Trader
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