Silver Price Prediction – Prices Break Out Above Trend Line Resistance

Silver prices rallied, breaking through trend resistance as the dollar eased.  Gold prices continue to rise to buoy the entire precious metals complex. U.S. yields stabilized after declining last weeek. The House of Representatives in the United States passed an infrastructure bill over the weekend, which will add more stimulus and help buoy the metals markets.

Technical analysis

Silver prices rallied, trend line resistance which is seen as short-term support near 24.39. Additional support is seen near the 10-day moving average at 23.97. Short-term momentum has turned positive as the fast stochastic generates a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD line). The MACD histogram is printing in negative territory with an upward sloping trajectory which points to higher prices.

Infrastructure Bill Passes Over the Weekend

The House of Representatives passed its 1-trillion dollar infrastructure bill. The infrastructure bill excluded some social policies, which is why the bill was held up after passing the Senate months ago. The stimulus is likely to buoy roads, bridges and the electrical grid. It will also focus on WiFi as well as electric car charging stations. Many of these items require both copper and sliver which has buoyed the metals complex.