Silver stabilizes amid strong U.S. data

Silver on a fundamental level

Silver settled at around $48.5 per ounce on Thursday, stabilizing after its recent gains, as investors digested stronger-than-expected U.S. economic data.

The ADP report showed that private employers added 42,000 jobs in October, beating expectations and underscoring the resilience of the labor market, while the Institute for Supply Management's (ISM) services PMI rose to an eight-month high.

Markets now expect a 62% probability of a 25-basis point rate cut in December, down sharply from more than 90% before last week's FOMC meeting.

Last month, silver briefly hit record highs as investors took profits.  

Silver on a technical level

Silver prices are trading within a rising price channel on the hourly frame, reaching the upper limit of this price channel near the levels of $48.80 per ounce.

Silver is trying to form an inverted head and shoulders pattern that targets $50.50 and then $52.50 per ounce.

The best buying zones are currently near the retest levels of the broken downtrend at $48.50/20 per ounce.

This scenario will fail if $46.80/oz is broken.