Just hours before the critical decision of Federal Reserve of America for a highly anticipated rate hike which duly has been factored in by the capital markets across the globe, precious metals are trading in positive territory with gold up 0.4% or $4.6 at $1163.60 and silver up 0.59% or $0.101 at $17.078 where as dollar index is trading slightly in negative zone with a 0.16 0r 0.16% cut at 100.92 during the Asian hours of trading.
How are the technicals of both metals shaping up ? i have already covered gold in this post – Gold ready to glitter back again
Technically daily Silver chart is showing a median point of $16.836 which is derived out of the merger of 2 trend lines criss-crossing at that point.
Bullish trend line suggests a price movement towards the $18 level while on the other hand bearish trend line suggests a move slightly lower than $16 making the $16.836 level more or less placed at 50% between the 2 decisive points.
This price point can likely act as a good support in short term, a decisive violation may result in sub $16 pricing for this shiny metal.
A rebound rally is expected to be in store for silver as most of the negativity arisen due the Fed rate hike is already in the price but a knee jerk reaction towards the level of $16.836 may not be ruled out either when the policy is announced later in the day.