Silver markets tried to rally during the trading session on Wednesday but struggled at the down trending line of the falling wedge, which shows that we continue to have a lot of resistance built into the $15.00 level.
Silver markets tried to rally but then gave back the gains during the trading session on Wednesday, showing signs of resistance at the $15.00 level yet again. This is a market that continues to be tight and negative overall, but we have also formed a bit of a falling wedge, and if that falling wedge gets broken to the upside, it’s very likely that we could start to take off to the upside. Obviously, this has a lot to do with the US dollar, so if the US dollar strengthens that could weigh upon the silver market.
If we break down below the $14.83 level, we could drift down towards the bottom of the candle stick from the Friday session. If we break down below there, the market is likely to unwind quite drastically. However, if we break to the upside and close on the daily chart above the $15.00 level, we could continue to reach towards much higher levels. Based upon the falling wedge, in theory we should go to the $60.00 level, but obviously that would take quite some time to get done.
Looking at the volatility, I think you can continue to trade in small positions only, because of the massive amount of volatility. In general, this is a marketplace that is highly volatile under most circumstances, and of course with all of the crucial amount of headlines coming out involving the US/China trade relations, it’s very likely we continue to see a lot of “risk on/risk off” trading. In other words, pay attention to your levels and trade small.
Please let us know what you think in the comments below
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.