Silver extended downside movement on Friday, dragging the price of white metal to less than $15.20 an ounce following the release of some key economic news. The technical bias remains bearish because of a Lower High in the recent upside rally.
As of this writing, the pair is being traded around $15.11. A support can be seen near $15.00, the confluence of psychological number as well as intraday low of yesterday ahead of $14.91, the low of the recent downside move and then $14.63, the horizontal resistance turned support area as demonstrated in our daily chart.
On the upside, the pair is likely to face a hurdle near $15.30, the intraday high of yesterday ahead of $15.56, the swing high of the bearish pin bar candle which was emerged earlier this week and then $16.00, the psychological number.
US Durable Goods Data
New orders for long-lasting goods manufactured in the United States rose in January as demand picked up broadly, offering a ray of hope for the downtrodden manufacturing sector. The Commerce Department said orders for durable goods, items as varied as toasters or aircraft meant to last three years or more, surged 4.9 percent last month, reversing December’s 4.6 percent plunge. The increase in January was the largest since March 2015. The durable goods report was the latest indication that the worst of the manufacturing downturn was probably over. Manufacturing output rose solidly in January, and factory payrolls that month increased by the most since August 2013.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term