Silver markets of course have been back and forth during the trading session on Monday, initially dipping towards the bottom of the falling wedge. However, we have turned around to show signs of strength, and therefore it looks like we are going to end up forming a bit of a hammer, which of course is very bullish. With that in mind, if we can break above the downtrend line of the falling wedge, it could kick off where we go next. If it does, classic technical analysis would have this market reaching towards the $16.00 level.
SILVER Video 14.05.19
Looking at the chart, if we break down below the bottom of the falling wedge, then we will probably reach towards the $14.50 level, and then down to the $14.25 level, an area that should be interesting, but I think once we reach down to that level we will probably then complete the move all the way down to the $14.00 level. Alternately, if we were to turn around and break above the downtrend line, it’s very likely that we clear the $15.00 level. Once we clear that area, although the projected target would be $16.00, it’s going to be more of a grind. I believe that a flush lower is probably going to be much quicker than a rally will develop.
Pay attention to the US dollar, because silver tends to move against the dollar overall. In other words, if the dollar starts to strengthen, that could cause issues for silver. Obviously, the exact opposite situation can happen, with the US dollar falling in value and silver rallying.
Please let us know what you think in the comments below