The Silver markets continue to find resistance at the $15 level, while they will also find significant support at the $14 level. Ultimately, this market continues to go back and forth but I think silver is trying to form a bit of a base. At this point, I think if we can break above the $15 level, then we can go much higher, perhaps breaking towards $15.50 next, and then the $16 level after that.
However, if we were to break down below the $14 level that would be very negative for the silver market, and probably continue the downtrend that we have seen most of the year. In that scenario, I think the market probably goes down to the $12 level underneath which has been historically important. Remember, J.P. Morgan and several other large banks have a massive short position in the paper market to keep silver down. However, we can also pay attention to the US dollar and see what it is doing as a barometer of where we should go.
Recently, we have seen a bit of a divergence from the US dollar though, as we have also seen buyers jumping in to pick up silver as a bit of a safety trade. It’s been a while since I’ve seen the precious metals act is like that, so that may be new for some people. If we can break above the $15 level, I think that we will see a huge move start to build up at that point. I would anticipate that the $15.50 level as significant resistance, and a pullback from there would make sense. However, if we turned around to break above there then the market really will take off. I do believe that happens given enough time but I would keep my position small in the meantime.
SILVER Video 19.10.18
This article was originally posted on FX Empire
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