Silver markets went back and forth during the trading session initially falling on Thursday but did find enough support underneath the turn the market around and form a bit of a hammer later in the day. The $15.00 level above continues to offer resistance, but if we were to break above that, and perhaps even the downtrend line of the wedge, that’s actually a very strong and bullish signal longer term. Typically, with a falling wedge, you aim for the top of it which is basically $16.00. That’s a huge move and Silver and could lead to tremendous gains.
SILVER Video 26.04.19
If we do get that signal, it won’t necessarily be an easy ride higher. We have a series of highs to take out, so this is more or less going to be a longer-term signal. The alternate scenario is that we break down below the lows from earlier this week, which opens the door to the $14.50 and then potentially $14.00 after that. Pay attention to the US dollar, it will have its typical influence on silver, and as it rises a lot of times silver will fall and vice versa. During the trading session on Thursday we had seen extreme dollar strength in the beginning, but by the time the Americans came back they started selling the greenback again, giving a bit of a lift to precious metals. Once we make a break in either direction, this market will become much more obvious.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD Price Forecast – Aussie dollar pierces 0.70
- Crude Oil Price Forecast – Crude oil markets pull back
- Gold Price Forecast – Gold markets show strength on Thursday
- Transportation Sector is Testing Resistance
- GBP/USD Price Forecast – British pound continues to break down
- FX Market Dynamics Foreshadows the Possible Troubles