Silver prices gained 6.63% last week to reverse the direction of the price action and create a major buy signal. Commodity investors are focused on the U.S. stimulus bill that is still being discussed among the lawmakers.
“Softer jobs growth and tighter social mobility restrictions ostensibly lower the hurdle for a policy response from (U.S.) Congress,” said Stephen Innes, chief global market strategist at financial services firm Axi.
Silver prices had initially broken down below the triangle’s support at $23.40 and pushed to $21.89, which is the 2-month low for the metal. However, the buyers have managed to reverse the downtrend and force a bullish weekly close above the $24 mark. The price action now faces a strong resistance block in the area of $24.80 – $25.00.
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