Silver markets were extraordinarily negative during the trading session on Thursday and sliced through the $16.00 level. By doing so, the market shows just how weak it is, because the area had been so supportive in the past. Looking at the size of this candlestick, it’s obvious that there is a lot of negativity there, and a breakdown below this candlestick would send this market down towards the $15.50 level. Any rally at this point will certainly look at the $16.50 level as significant attempt to break above there as bullish if it does in fact happen but at this point, I don’t anticipate it being very easy to do. After all, silver has a certain industrial component to it, and it should be noted that the US dollar strengthened considerably during the day. This shows that metals are going to be on the back foot not only due to a strengthening dollar but perhaps a lack of inflation.
SILVER Video 13.03.20
Going back to the industrial part of silver, it’s obvious that we don’t have much in the way of demand at the moment, as the market is obviously focusing on the fact that industry is running very slow in this environment. If that’s going to be the case, silver is going to continue to be very sluggish and not needed. After all, although there is a precious metal aspect to the market, the reality is that the silver markets tend underperform gold, which of course is getting crushed during the session as well. At this point, fading rallies continues to work as silver is ready to rollover yet again.
This article was originally posted on FX Empire
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