The Silver markets went back and forth during the week, but the most catching thing about the weekly chart is that we have formed a bit of a hammer. The hammer of course is a very bullish sign, and therefore it should be paid attention to. To break below the $17.00 level that would be very negative sign, as it would be a major support level giving way. If that were to happen, the support level that we would next reach towards could be the $16.00 level. The alternate scenario of course is that we finally take off to the upside and quite frankly there are plenty of fundamental reasons out there to think it could happen.
SILVER Video 21.10.19
The monetary policy of central banks around the world continue to favor quantitative easing and interest rate cuts, and that drives up demand for hard assets such as gold and silver. With that being the case it makes sense that the market would continue to go higher based upon a correlation to the gold market, and of course simply a way to run away from the US dollar. Looking at the candlesticks over the last several weeks, you can see that we have formed a couple of hammers proceeded by several shooting stars. This shows that there is a lot of back-and-forth type of pressure, and indecision. That normally leads the way to an explosive move in one direction or another. You could also make an argument for a bullish flag.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Forecast – Tropical Depression Sparks Short Covering
- Natural Gas Price Prediction – Inventories Surpass 5-year Average Range
- U.S. Dollar Index Futures (DX) Technical Analysis – Testing Retracement Zone at 97.140 to 96.630
- Crude Oil Price Forecast – Slight Pullback Going Into The Weekend
- Gold Price Prediction – Prices Form Doji Day, Ahead of Brexit Vote
- Gold Weekly Price Forecast – Gold Markets Rather Quiet For The Week