Silver markets have negative week to find support on uptrend line

The Silver markets continue to be choppy in general, as we felt towards the uptrend line only to turn around and form a somewhat supportive hammer like candle. This shows that the uptrend line is very much intact, but above we have a downtrend line that makes out a symmetrical triangle, so I think we will need to make some type of decision rather soon, and I think it would be easy to make a trade based upon the longer-term move, and until then it’s pure speculation for longer-term traders. If we were to break above the downtrend line, then I think the market could go to the $18 level, perhaps even $20 over the longer-term. Otherwise, if the market breaks down below the uptrend line, the market could drop to the $15.50 level which has been massive support going back to late 2016. A break down below there would of course be very negative.

Ultimately, this is a market that should continue to be very noisy, but if you are patient enough you can pay attention to the various triggers that you can take advantage of. Ultimately, this is a long-term trade just waiting to happen, but we don’t have that signal yet. Be cautious, and perhaps take small positions initially and add to them as markets move in your favor. A break of this consolidation triangle should send markets in the motion finally, which as you can tell has been an issue as of late. In general, this is a market that continues to show a lot of noise, but I think we have some clear markers on the chart.

SILVER Video 21.05.18