Silver markets went back and forth during the week, forming a bit of a neutral candle. This is a good sign though, because we are trying to form a bit of a base in the silver market. Ultimately, I believe that we will break out, but it’s going to take a bit of grinding sideways before doing so.
Silver markets have touched the $14 level, an area of major support recently. In fact, this is an area that has been massive on longer-term charts for some time. At this point, I think that the silver market is starting to attract a lot of longer-term players, as $14 has been so reliable. At this point, if we were to break down below the $14 level, we could then go down to the $12 level after that. That’s an area that is supported uneven longer-term charts, and of course could have a massive influence on what happens next. I would be an extreme buyer down at those levels, but quite frankly I don’t think the $14 level is going to give way.
Once we break the $15 level above, then I think the market goes to the $16 level next. That’s an area that was previous support, and it should now be resistance. I think in fact it is the next target if we can clear the recent consolidation. Pay attention to the US dollar, because the greenback of course has a major influence on this market, and if we can get some dollar weakness, that could help silver break out as well. Recently, it has seen a bit of a safety bid, but more or less I believe that we have seen has been more based upon technical trading than anything else.
Source: https://www.fxempire.com/forecasts/arti ... eek-533220
