Silver markets continue to be very choppy overall, as we don’t really know where to go next due to risk appetite fluctuating around the world. As I look at the market right now, it’s obvious to me that we are currently consolidating between the $14 level on the bottom, and the $15 level on the top. With that in mind, I believe that following the 50 day EMA is probably the best way to go, as it is starting to tilt a little bit lower again. However, I recognize that the bigger picture says that we are in a $1.00 consolidation box, so therefore you should play the market as it shows itself.
SILVER Video 07.12.18
If we break down below the $14 level, that opens up fresh new selling, and could send this market much lower, perhaps down to the $12 handle. The $12 handle is crucial for support on longer-term charts, and therefore I think it will be a huge new battlefield to deal with. Ultimately though, you should also pay attention to the fact that we have recently broken through a major uptrend line on the twenty-year chart. Because of this, I do think that we continue to see selling pressure and will eventually break to the $12.00 level. However, if we do break above the $15.00 level, then you need to recognize that things have changed, and we would probably continue the previous consolidation, which could send this market looking towards the $17 level. At the end of the day, it’s going to come down to the greenback and how it’s valued. If the US dollar continues to strengthen, that will put a lot of damaging pressure in this market.
This article was originally posted on FX Empire
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