Silver markets initially tried to rally but found resistance yet again at the downtrend line from the falling wedge that I’ve been talking about. With this being the case, it looks as if we are ready to continue the overall consolidation pattern, and therefore even though we have seen a lot of negativity during the trading session on Thursday, we really haven’t settled anything quite yet. This is a market that remains very erratic, just as the rest of the financial markets in the world are. Ultimately, this is a scenario where we need to see some type of significant and impulsive break out of this pattern to get overly bullish or bearish.
SILVER Video 17.05.19
Looking at the pattern, if we can break above the $14.85 level it’s very likely that we could go looking to fulfill what the falling wedge suggests, a move to the $16.00 level.
On the other side of the equation the market breaking down below the $14.50 level could send this market lower, perhaps down to the $14.25 level, and then the $14.00 level.
Both of those scenarios are equally as plausible, especially considering how confused the markets have been as of late. One thing is for sure though, we have definite trendlines that we can follow in the silver market and that we should pay attention to. This market is heavily influenced by the US dollar as well, so pay attention to what’s going over there. Quite frankly, if the US dollar strengthens that will be very bearish for this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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