Silver price consolidates after the rebound from March 16 lows. Silver added over 29% from the lows after central banks inject liquidity and governments around the globe stepped in with relief packages to combat the coronavirus impact. The 2.2 trillion relief package that announced by the U.S. administration improved investors sentiment and equities managed to rally while investors went bottom fishing. Silver price lost over 38% amid the global markets turbulence as investors liquidate their portfolios looking for cover in cash.
World Health Organization said there are signs of stabilization in Europe’s coronavirus spread, noting the smallest number of new cases in almost two weeks in hardest-hit Italy.
Manufacturing activity managed to rebound in March in an impressive V-shaped recovery. The manufacturing purchasing managers’ index jumped to 52.0, up from 35.7 in February and above the expectations of 45.0.
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Silver Price Technical Outlook
The silver price is 0.72% higher at $14.10 as the price looking for stabilization after the recent rebound. The recent bounce from March 16 lows has improved the short term outlook, but the long term technical outlook is still negative for silver, and lower levels can’t be ruled out. Silver price needs to see an improvement in industrial demand that will support the recent rebound.
On the upside, first resistance for silver will be met at $14.14 the daily top. If silver price breaks above, the next resistance to watch is at $14.52 the high from yesterday’s trading session, The next obstacle stands at $14.70 the high from March 25 trading session.
On the contrary, first support for the silver price will be met at $13.90 the daily low. Next support zone stands at $13.17 the low from March 24th session. More bids might emerge at $12.27 the low from March 23.
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