Silver markets went back and forth during the course of the week, testing the area underneath $15.00 level. That’s an area that has a lot of psychological importance attached to it, but as you can see I have a falling wedge drawn on the chart, so if we were to break above the downtrend line, the market could very well go looking towards the $16 level. Don’t get me wrong, it’s going to take a lot of effort to get up there but that’s what the chart says.
SILVER Video 22.04.19
On the other side of that scenario possibility, the breaking of the bottom of the candle stick could send this market down to the $14.50 level, and then eventually the $14 level. Silver typically will move with gold, and one will quite often lead the other one, so pay attention to both charts. If one of them breaks out or breaks down, quite often the other one will follow shortly thereafter. In fact, that might be the trade when it comes to precious metals.
It’s obvious that the market is trying to build up inertia for the next move, and your job as a trader is to let the market tell you where that’s going to be, you have the support and resistance lines on the chart in front of you, now it’s only a matter of time before we break out. Cracking through one of these lines on the daily close is more than enough reason for longer-term traders to get involved.
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This article was originally posted on FX Empire
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