Silver markets struggle to hang onto gains on Monday, as we broke above the $15.00 level only to find more resistance. Ultimately, this is a market that is looking very bearish as of late but we are also forming a bit of a “falling wedge”, which is sometimes a bullish sign if we break above the downtrend line. If we break above the downtrend line above, then the market could go as high as the $16.00 level. That’s an area that should be rather important, so I would be a bit surprised if we broke above there anytime soon.
SILVER Video 23.04.19
The other side of the equation is that we continue to drop from here, reaching down towards the $14.75 level. That is where we have seen buyers come back into the marketplace, so it’s very likely that it will be a bit difficult to break down through. If we do, then it opens the door to the $14.50 level, and then possibly down to the $14.00 level longer-term. Keep in mind that the market is going to be very sensitive to the US dollar as per usual, so if the US dollar rallies, it’s likely that silver will continue to grind lower. However, if it’s the other way around, and the greenback falters, that could send Silver higher, as it would have more of a “risk on” feel to it. I would also point out though that just above we have the 50 day EMA pictured in red, and the 200 day EMA pictured in blue. Both of those could influence sellers to get involved in the market as well.
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This article was originally posted on FX Empire
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