Silver markets continue to go sideways overall, as we are sitting above the 50 day EMA. We also have the $15 level above which is of course massive resistance based upon the large come around, psychologically important figure, and of course the rejection of price at that level several times during this past year. If we can break above the $15 level, the market will probably go looking towards the $16 level, based upon the consolidation measuring $1.00 over the last several months.
SILVER Video 26.12.18
Alternately, if we break down below the 50 day EMA, we probably will go looking towards the $14.00 level underneath, which should be massive support. If we break down below there, it’s likely that we will flush down to the $13.00 level, possibly even the $12.00 level after that. The $12.00 level is massive support on longer-term charts, so I think at that point that’s probably about as low as we could go.
Ultimately, if we do break out to the upside I think we will probably continue further than the $16 level quite frankly. This would coincide quite nicely with the US dollar losing value, which it looks like it suddenly could based upon the Federal Reserve stepping back a bit. There can also be a bit of a safety play when it comes to Silver, although that correlation has failed quite a bit over the last several years. In general, I am bullish but I recognize that a highly levered position could be trouble if you are not careful.