Silver markets have fallen a bit during the trading session on Wednesday, as it looks like we are trying to reach down towards the $17.00 level. On an impulsive break below that level, it would in fact be a very negative sign as it would show a descending triangle kicking off. That could measure for a move down to the $14.25 level, which would be a complete turnaround obviously. In other words, the $17.00 level is absolutely crucial.
SILVER Video 17.10.19
All things been equal though, if we can recapture the downtrend line, then I think we probably go higher, perhaps reaching towards the $18.75 level, and then eventually the $19.75 level. While central banks around the world continue to cut interest rates, precious metals did take off but at this point we need to see the market recover rather soon in order to take on a significant bullish move. While I do believe in silver longer-term, a break down below the $17 level has me reassessing the entire market. It is because of this that I think the next several sessions will be crucial as to where silver goes longer term. I think that at this point paid attention to any type of impulsive candle will be crucial. Another words, you should probably be on the sidelines for the time being, and simply pay attention for a large candlestick in one direction or the other. That should eventually kick off to the next major move, so what the market tell you which direction to trade.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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