Silver markets went back and forth during the week, and relatively quiet and choppy trading. Silver markets have been obliterated during the previous week, and the fact that we did not get a complete turnaround and reversal during this past week suggests that perhaps silver has lower to go. While I am bullish of silver longer-term, the candlestick from the previous week was very negative and wiped out several supported hammers, not the least of which it wiped out the uptrend line. I anticipate that silver probably needs to pullback at the very least to find value. That being said, this market continues to be very volatile and driven based upon trade war headlines.
SILVER Video 18.11.19
What’s completely disconcerting about the bullish case here is that the weekly candlestick did almost nothing to engulf the candlestick from the week before. In other words, even though we were a bit bullish we have a lot of work to do before we can take all of that negativity out of the market. It should also be noted that the $17.00 level will continue to offer a big resistance barrier for silver contracts, so the fact that we could not close above there tells me quite a bit as well.
To the downside, I see the $16.00 level as being rather supportive, and of course we have the 61.8% Fibonacci retracement above there at the $60.35 level where the 50 week EMA is currently moving. Those are a couple of downward targets that I could see, but as to the upside you would need to be willing to hang on to a potential trade for quite some time. Again, I do believe that silver eventually goes higher but it looks to me like it’s ready to pull back in the meantime.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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