Home > Daily Update: Silver Price Bearish Flag Suggests More Downside Possible

Daily Update: Silver Price Bearish Flag Suggests More Downside Possible

Silver price forms a possible bearish flag pattern. Zoom Video Communications declined after management warned on future earnings. Barratt Developments stock price trades with a bullish tone ahead of earnings.

The first trading day of September starts with financial markets unchanged on the week. It is only normal, considering that this is the Non-Farm Payrolls week and ranges are the norm.

Silver price forms a possible bearish flag pattern. It only consolidated for the last month or so in what appears to be a bearish continuation pattern. Gold trades above $1,800 and oil is just shy below $70, awaiting the OPEC decision and the Crude Oil Inventories report due later today.

The stock market in the United States ended the previous month at all-time highs. Dow Jones and the S&P 500 closed the month at their highs and futures are in green.

The bullishness across the ocean led to a strong opening in Europe. The Spanish index is back threatening with a break above 9,000 points, while the German Dax is up 0.80% at the time of writing. FTSE 100 in the United Kingdom trades comfortably above 7,100.

Economic Events to Consider Today

Today is the Manufacturing PMI day in Europe and the United States. Every first week of the month, traders expect the manufacturing data as it tells how the sector performed in the previous month. Also, because it is released just days ahead of the Non-Farm Payrolls report in the United States, the employment component plays a critical role when interpreting the ISM Manufacturing. The market expects the ISM Manufacturing at 58.5 vs 59.5  previously, well into expansionary territory.

Still in the United States, the ADP Non-Farm Employment Change, or private payrolls, are expected at 620,000 vs 330,000 in July.

The oil price is in focus today as OPEC Meetings start. Later in the trading day, the Crude Oil Inventories will show how the demand for oil in the world’s largest economy changed last week.

Today’s Markets to Watch

Today’s markets to watch are silver, Zoom Video Communications, and Barratt Developments.

Silver Price

The bullish flag seen on the silver 4h chart points to a possible decline to $20. For that, the market needs to close below $23, signifying that the pattern ended. Otherwise, the risk here is that silver continues its slow grind higher. A move above $26 would invalidate the bearish scenario.

Zoom Video Communications

Zoom stock price suffered a massive selloff yesterday and futures point to further declines. The management warned on future earnings and the stock price declined below $300. After the market formed a double top pattern earlier, further weakness below $280 lies ahead.  

Barratt Developments

Barratt Developments stock price just broke out of a possible bullish flag pattern. The company reports its earnings tomorrow and better than expected numbers may be just what the price needs to fully recover from the pandemic drop.

Winners and Losers

U.S. and European equities start the new month on a strong foot; the Japanese yen is weak. 

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