Silver markets continue to show lots of sideways action during the trading session on Thursday, although we did initially dipped lower. The $15 level of course is resistance, but ultimately what I am paying more attention to is the fact that we are in a falling wedge. If we break above the top of the downtrend line at the top of the wedge, then it’s very likely that the market could break towards the $16 level although it isn’t going to be very easy to make happen. If we break down below the bottom of the wedge, then we probably drop down to the $14.50 level, possibly even the $14.00 level.
SILVER Video 19.04.19
Silver will continue to be highly influenced by the US dollar, which of course is a bit strong at the moment, and that puts precious metals under a bit of pressure. Overall, I think that the market is consolidating and building up for a bigger move, but we need to wait until we break out of the wedge in order to put money to work. Once that happens we should get a pretty explosive move. All things being equal though, so far it’s been rather negative over the last couple of months but clearly we have to make some type of decision and make it soon. There is the possibility of the Federal Reserve cutting interest rates later this year and that of course would send Silver higher, as the US dollar would falter. Speculation on that move may be ready to happen.
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This article was originally posted on FX Empire
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