Silver attempting break above 5-DMA

Omkar Godbole FXStreet Contributor

Corrective move in Silver gathered pace in Asia, however, 5-DMA hurdle of $18.66 is proving to be a tough nut to crack.

Eyes Yellen speech

It’s a judgment day of sorts for precious metals pack – Gold and Silver - as they are highly sensitive to Us interest rates. Falling Fed rate hike bets and negative bond yields in Europe and Japan forced investors to buy gold and silver in first half of this year.

Note that these metals offer zero yield and hence could take a hit in case Yellen is massively hawkish in her speech at Jackson Hole Symposium later today. Silver was last seen trading around $16.63/Oz levels.

Silver Technical Levels

Breach of immediate resistance at $18.66 (5-DMA) would open doors for $19.15 (10-DMA), above which supply around $19.43 (50-DMA) could be tested. On the lower side, breach of $18.45 (Asian session low) would shift risk in favor of drop to $18.27 (38.2% of Dec low – July high) and $18.00 (zero figure).

1. R3 018.84
2. R2 018.75
3. R1 018.63
PP 018.54
1. S1 018.42
2. S2 018.33
3. S3 018.21

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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