Silver markets broke down significantly during the week, slicing through a major uptrend line that has been supporting the market for some time. This is a majorly negative candlestick though, so at this point it’s likely that we will continue to see this market drop from here. The 200 week EMA underneath has offered support though, so it’s very likely that we could get a short-term bounce. The question now is whether or not the market could break down below there. If it does, then it’s likely that the market continues to go even lower.
SILVER Video 11.11.19
One of the things that is concerning about this candlestick is that it sliced through so many supportive looking candlesticks from the last couple of months, which are much smaller in range. At this point, the market looks as if it has wiped out quite a bit of momentum to the upside. At this point, a retest of the uptrend line is probably in order, and if we can break above there it’s likely that the market could go higher. However, don’t be surprised at all to see this market fail at that area. The ferocity of the selling was brutal when it seemed as if the Americans and the Chinese were coming together a bit during the negotiations. At this point, silver will have to prove itself going forward, although one thing that is helping is that the Friday candlestick in the gold markets shows quite a bit of support in the form of a hammer. Caution will certainly be the way going forward.
This article was originally posted on FX Empire
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