Silver prices dropped more than 1.2% on Tuesday but held support and closed off the session lows. Prices are forming a bear flag continuation pattern and a break of target support could confirm a tipple top. U.S. Treasury yields moved higher following a stronger than expected housing price index. This rise in housing is a key inflation gauge which the Fed is hoping is transitory.
Silver prices dropped but held support as the bear flag continuation pattern continued to perpetuate. Support is seen near an upward sloping trend line come in at 25.70. A secondary upward sloping trend line comes in near 25.25. Resistance is seen near the 10-day moving average seen near 26.01. The short-term trend is downward sloping as the 10-day moving average recently crossed below the 100-day moving average. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic is printing a reading of 9 below the oversold trigger level of 20 which could foreshadow a correction. The RSI also has a negative trajectory which points to accelerating negative momentum.
Home Prices Surge as Inventories Tumble
Housing price gains have been expanding for the last 11 as demand continues to outstrip supply. According to the National Association of Realtors, the inventory of homes for sale rose slightly in May compared with April but was still 21% lower than May 2020. According to the S&P CoreLogic Case-Shiller National Home Price Index, home prices rose 14.6% in April, up from a 13.3% increase in March. Among larger cities covered by the index, the 10-city composite was up 14.4% year over year, from 12.9% the previous month.
This article was originally posted on FX Empire
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