Silver stabilizes after the Flash Crash, still sub-$ 16 mark
|Silver futures on Comex stalled its recovery from the flash crash witnessed in early Asia (pre-Tokyo open), now entering a phase of consolidation, as investors gear up for the main risk event for today, the US labour market report due later today at 1230GMT.
The white metal faced aggressive selling pressure on a break above $ 16 mark and from started the tumble, eroding almost $ 1.5 in fraction of a second to hit the lowest levels since March 2016 at 14.67. Markets blame the slump in prices to sudden liquidity drain, although a ‘fat finger error’ also cannot be ruled out.
Moreover, several stop losses could have been triggered on a break below $ 15.85 levels, further accelerating the selling spiral in silver. Looking ahead, the upcoming US employment numbers will throw fresh light on the US interest rates outlook, which will have a significant impact on the USD-sensitive silver.
Silver: Technical levels
At 15.88, the immediate support lies at $ 15 mark, below which a test of 15-month lows of $ 14.67 is on the cards. Top side, a break above $ 16 mark would open doors for a test of $ 16.45 (20-DMA), beyond which $ 17.21/26 (200 & 100-DMA) are the next targets.
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