Silver spiked from $19.63 to $20.28 per ounce on Thursday after disappointing employment figures released by the US labor department, white metal however gave up some gains later on and closed at $20.03.
At the moment of writing in Asian session, precious metal is being traded at $20.03, slightly lower than previous day close. Immediate support is shown around $19.80 to $19.90 region where a number of moving averages including 55 Daily Moving Average (DMA) are sitting in. A break below this support zone may target another major support which is at $19.66. This is the only notable level ahead of $19.31 that is swing low of previous wave. A fall below $19.31 will turn our short to medium term bias about white metal into bearish and next attacking point shall be double bottom support in that case.
On upside, immediate resistance can be noted around $20.30, 38% fib level of recent move, and then $20.58 that is swing high of last wave. A break above this resistance zone shall target 20.83 which is 50% fib level as well as a confluence of moving averages as shown in the above chart. A rebound from $20.83 will print Higher High (HH) in bullion price, which will be a confirmation of more upside movement.
Previously a report by the US labor department showed that number of people who filed unemployment claims ticked up last week, thus the actual figure remained above expectations. This triggered a sharp bearish movement in the US dollar that in turn helped Silver and Gold to extend gains.
Earlier this week we saw huge selling pressure in bullion prices after China’s quarterly growth disappointed. Moreover, industrial production also slowed down in Asia’s largest economy. China is the biggest buyer of Silver, thus growth concerns about Asian nation’s economy raised questions about Silver demand.