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Christopher Lewis
Silver daily chart, October 09, 2019

Silver markets initially fell during the trading session on Tuesday but turned around to break back above the 50 day EMA and reach towards the highs of the previous several sessions. As you can see on the chart, there is a huge wedge pattern developing, meaning that we should get some type of explosive move rather soon. All things being equal, the moving averages do suggest that we are going higher, so keep that in mind. Beyond that, one simply has to look around the world to see how many issues could send precious metals higher in general.

SILVER Video 09.10.19

Looking at the chart, if we were to break down in the opposite direction, the $17.00 level would more than likely offer support, and it would be difficult to break down through there and continue, but if we did it would more than likely be in a major “risk on” situation, and precious metals in general would fall. That being said, with the US/China trade situation going on, the global growth situation slowing down, and perhaps most importantly central banks around the world cutting rates, it makes much more sense that Silver should go higher.

To the upside, the market could break above that downtrend line to reach towards the $18.75 level, and then possibly towards the $20 level after that. To the downside, the 200 day EMA currently sits at the $16.21 level, and that would be about as low as this market would likely go down to. At this point, silver still looks like it will more than likely be a “buy on the dips” situation.

Please let us know what you think in the comments below

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