Silver markets initially rallied during the trading session on Wednesday but gave back the gains as the $15 level was a bit too much for buyers to overcome. At this point in time, it’s likely that we will continue to chop around but I think that it’s only a matter time before we have to make some type of impulsive move.
SILVER Video 18.04.19
On the chart, I have drawn a couple of trendlines, and these trendlines of course suggests that we are forming a falling wedge pattern, which is a very bullish sign if we can break out above the top of it. However, if we break down below the bottom of this wedge, then we could go down towards the $14.75 level, and then eventually the $14.50 level.
I would expect a lot of volatility and I would of course pay attention to the US dollar as it will have an influence on the value of precious metals overall, especially silver as it is much more volatile. If we were to break to the upside of the falling wedge, the market could then go to the $15.25 level, and a break above there opens the door all the way to the $16 level as it is the top of the wedge. That being said, it’s going to take a lot of momentum to make that happen so therefore would be more of a long-term trade. To the downside, the $14 50 Cents Level Could Give Way to the $14.00 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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