Spot silver is trading higher on Tuesday after holding above the long-term 50% level at $60.835. This is the key decision area on the daily chart. Traders are straddling the midpoint after Friday’s break below it and today’s recovery back above it.
The main trend is down according to the daily swing chart. A trade through the main top at $67.55 will change the main trend to up. A move through Friday’s low at $59.69 will signal a resumption of the downtrend.
The minor trend is down. A trade through the minor top at $62.09 will turn the minor trend up and show that buyers are doing more than defending the midpoint.
The first upside area is the short-term retracement zone at $61.04 to $62.98. Silver is trading inside the lower half of this area. Taking out $62.09 would put the upper level at $62.98 in play, followed by the 50-day moving average at $64.17.
Failure to hold the long-term 50% level at $60.835 would expose $59.69. Below it, the next swing-bottom support comes in at $56.56 and $54.78.
What to Watch
Wednesday’s Fed minutes are the next read for a silver market that’s been trading off the U.S. Dollar Index and long-term Treasury yields. Both dipped Tuesday and that was enough to lift spot silver back over the midpoint. Neither one has turned yet.
Spot silver bottomed at $60.28, got back above $60.835 and ran up to $61.71 late Tuesday, within 40 cents of $62.09. The bias is still to the downside while the main trend is down and spot silver remains below the 50-day moving average. The move back above the midpoint gives shorts a reason to be careful.
More Information in our Economic Calendar.