Silver markets rallied towards the $15 level early during the day on Wednesday, reaching towards significant resistance in the process. At this point, I think that the market breaking above there, and more importantly staying above there on a daily close, could be a buying scenario all the way to at least the $16 level.
SILVER Video 20.12.18
Ultimately, I believe that the market has been consolidating for quite some time, waiting to figure out what the Fed is going to do next. If the Federal Reserve sounds a bit more dovish, we will see the US dollar fall a bit, and perhaps a bit for precious metals may come back into vogue. However, if they sound just as hawkish as they once did, we will probably see Silver drop back down towards the $14.50 level, perhaps even down to the $14.00 level.
At this point, I suspect that you need to wait for the daily close to put any money to work though, because silver is notoriously volatile. If we break out I think that the $16.00 level will offer significant resistance, but I think we probably even grind our way towards the $17 level higher. If we were to turn around to break down below the $14.00 level, then I think the market probably drops down to the $12.00 level as well. Expect a lot of noise and choppiness, but we have a clear buy signal if we can break above it.
