Silver markets initially tried to rally during the week but found enough resistance above the turn around and roll over slightly. At this point in time it’s likely that the $14.00 level underneath will be the “floor” in the market, so I don’t necessarily think that we go much lower. However, I do think that the market will be tempted to test that level. That being said, if we did break down below the $14.00 level, it’s likely that we could go to the $13.50 level, possibly even the $13 level after that.
SILVER Video 27.05.19
The alternate scenario is that we break through the trend line and perhaps even the $14.85 level to go back towards the $16 level. All things being equal, this is a market that will be sensitive to the US dollar and of course global growth as it is an industrial metal. In this type of environment though, it’s simply easier to follow the trend lines and not try to overthink the entire situation. Remember, silver does tend to be very volatile at times, and although we have been very negative for some time, I do think that typically speaking, the market has a somewhat limited downside.
The $16.00 level above is massive resistance, and quite frankly I think it would be very difficult to break above there. If we did, then it would be a huge spike towards the $17.00 level. All things in consideration, I think we go a little lower before buying.
Please let us know what you think in the comments below
