Last Friday, December silver settled at $32.097 an ounce. The white metal finished 4.7% down on the week.
Earlier, silver price climbed on the back of gold, but then tumbled as traders moved away from precious metals. Industrial metals were stronger after China’s data releases showed that production and retail sales were much improved and GDP reported down, but within the expectations. Traders are hoping that China’s economy is about to turn around.
The next week’s outlook for silver remains bearish, as traders seem to be moving to commodity currencies and away from metals. With improved economic data from the U.S., the chances of additional stimulus from the Federal Reserve seem pretty slim.
The current market sentiment is a mixed, as traders are disappointed at the outcome of the EU Summit and uncertain about markets direction due to the U.S. election tree weeks from now.
The technical charts look increasingly disappointing to silver bulls, who have been expecting the white metal’s continuous rise after the Federal Reserve quantitative easing announcement from September. Those who toke short position on silver due to sentiment extremes and technicals were presented a great risk/reward opportunity and had the chance to realize gains of $3-$5.
However, with silver prices around $32, the first target of October’s S1 pivot has been reached. The next stop for silver is likely $31 where trend line, moving average, and Fibonacci support resides.
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