Silver markets tried to rally during the trading session on Tuesday but found enough resistance at the downtrend line of the rising wedge to pull back to form a bit of a shooting star. Previously, during the trading session on Monday, we had formed a hammer. It shows just how tight and directional S the market is. This is a great proxy for what’s going on around the world, as we are not real sure as to whether things are going to be good or bad. Silver of course is very sensitive to economic conditions and of course risk appetite. If we can break above the $15.00 level I think that the market could very well continue to rise, perhaps trying to gain towards the $16.00 level.
SILVER Video 15.05.19
Looking at the chart, I think we need to see some type of impulsive candle to get moving in this market, and therefore I would wait for a large candle, either green or red start trading again. If we do break down below the support line of the falling wedge, then we could reach down to the $14.25 level, possibly even the $14.00 level. Remember, silver will react to the US dollar, as a rising US dollar typically works against the value of silver unless of course at some type of panic “run for safety.” Overall, this is a market that continues to be very difficult, so you should trade with small positions until we get some type of large candle telling you which direction the market wants to go.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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