Silver markets have rallied initially during the trading session on Wednesday, as the 50 day EMA was crossed. However, we have broken back down from that level and shown that there is still a lot of “risk off” when it comes to this market. Underneath, we have the 200 day EMA that should continue to offer support, so at this point I think essentially what has happened is that we have continued the overall consolidation area. I think silver is going to be difficult to trade as the US/China trade situation continues to be a major issue, and therefore the occasional headline will throw this market around. Underneath, we have the 200 day EMA and the 61.8% Fibonacci retracement level matching up for support.
SILVER Video 05.12.19
To the upside, if we were to break above the highs of the day then the market will probably test the $17.50 level and then eventually the $18.00 level. At this point, then you start to look at potential exhaustion in massive resistance. If we were to break above the $18.00 level that would be an extraordinarily bullish sign. At that point I would anticipate that the market would then go looking towards the $20 level.
Remember, silver is highly volatile, so this will move much quicker than gold when it comes to the headlines, and therefore you should be cautious. We have been very choppy as of late, but we are trying to stabilize in this general vicinity. At this point, it looks very likely to continue to be noisy, but in the end I anticipate that we will eventually get a large candle telling us which direction to go.
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This article was originally posted on FX Empire