Investors are watching closely towards the development of the situation in the US mainly watching Biden’s stimulus plan named “The Biden Emergency Action Plan to Save the Economy”. As the number of Covid-19 cases in the US surged over the past week, over 100 000 new cases and over 1 000 deaths, the pressure on the President-elect over the stimulus pack grows.
Silver has reached an important resistance level today, November 09, at $26.01 and couldn’t get enough momentum to breakout from this major barrier.
The upper threshold of the descending channel halted the further uptrend of Silver. MACD also signals the upcoming correction as the MACD is heading downwards to cross the signal line. As per this correction there are two important support levels to watch, $25.35 and $24.64, $24.50.
The correction of XAG / USD would be confirmed if the dynamic support of the ascending channel on a 15M chart of the pair is penetrated. As stated by Elliott’s Wave Theory, each impulse wave should consist of a 5-wave pattern, hence there should be one more leg up before we witness $25.35 and $24.64.
By the time of writing this article, XAG/USD on Overbit is traded at $25.61 per ounce and has touched the dynamic support of the ascending channel. Closing below this support will lead to a further short-term downtrend to support levels indicated above. As per mid and long-term perspective Silver looks bullish and closing above $26.00 will lead to further surges towards $27.17 and $30.
The US Dollar is near support level at 92.140 and there are many factors which might push the DXY further downwards, such as Trump’s lawsuits and Biden’s Emergency Aid, and tomorrow’s JOLTs Job Openings data as per September, the number expected to be announced is 903K lower than the previous month, and if lower number is announced, the US Dollar Index might drop further which will on other hand pump the prices of Silver and Gold.