April’s non-farm payrolls came out much weaker than expected and silver short higher in the initial reaction. However, it was met with selling pressure, and the price erased all its gains.
Today’s daily candle looks like a bearish pin bar, which is a reversal candle and might imply the short-term top is in place. But it is still far from the daily close as of the time of writing.
The supports for silver are at previous highs near 26.60 USD and afterward at the short-term uptrend line near 26.40.
As long as silver remains above those levels, the medium-term trend remains bullish.
On the other hand, the resistance is now at today’s highs of 27.70 USD, and silver needs to rise above it to confirm the uptrend. The next target would be at 28.30 USD.
The weak NFP number means the Fed can print money forever, which will surely lead to even stronger inflationary pressures. Both gold and silver should perform well in such an environment.