Silver market participants sold right away at the open on Monday, as we have turned right back around to show signs of life. Having said that, the $14.50 level above should be resistance, but I think it’s only a matter time before the sellers would get involved. If we show any exhausted at all, I’m more than willing to start shorting this market as we have been a nice downtrend for some time. In fact, we have even broken down through a support line based upon what I thought could have been a falling wedge.
SILVER Video 21.05.19
Because of the recent action, I have no interest in buying unless of course we break above the $14.85 level, which is going to take quite a significant turnaround. If we can break above there, then the market could continue to go much higher. However, I think it’s very unlikely, and therefore I think we are much more likely to see $14.00 attempted long before some type of major break out.
Overall, this is a market that will remain choppy and volatile, and of course sensitive to global risk and the US dollar. It does not get as much of a safety bid as gold goes, so keep that in mind. If you are looking to get into precious metals to protect wealth, gold is the first place you go. This is partially due to the US dollar influence, and of course the fact that in weakening economic conditions, we can see weakness in the silver market due to the fact that it is also an industrial metal.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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