Silver markets initially shot higher during the trading session on Tuesday, reaching towards the bottom of the uptrend line from previously, and that of course is a barrier that will be difficult to overcome. The fact that we ended up forming a shooting star of course is a negative sign and this was a move that was crushed by the idea that Donald Trump will be signing the so-called “Phase 1 deal” January 15. Announcing that in a low liquidity environment has caused major issues, and therefore it looks like a market that is very vulnerable at this point.
SILVER Video 02.01.19
Breaking below the $17.85 level could send this market looking down towards the 50 day EMA below. The market breaking above the top of the shooting star would of course be a very bullish sign and could send silver much higher. At this point in time, silver looks very vulnerable for at the very least a pullback, if not some type of breakdown. Ironically, while the US dollar could get hit due to a “risk on” move, precious metals will probably suffer the same fate if this does in fact in that being the case. With this being the case, this looks like a market that is going to make some serious decisions rather soon, which makes quite a bit of sense considering that the new year is starting, and traders will need to put money to work. Ultimately, this is a market that should make significant decisions over the next couple of days, so pay attention to how things are going, and the possibility of a trend change or continuation.
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This article was originally posted on FX Empire
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