More uncertainties are good for precious metals, but it looks like either gold or silver is losing its shine even though the market remains under high uncertainty. There is a nuclear & missile problem from North Korea, Brexit, Syrian missile attack, and elections in Europe which might determine the fate of European Union.
In the past, under high uncertainties, gold and silver shone the brightest. The 2008 crisis is one example where gold and silver were moving up triumphantly. Will it repeat the history and start moving up this year again?
The progress of the bull on the monthly chart encounters resistance at $18.50. It has been three months with no sustained break above $18.50 yet. The price might continue below the resistance level until the end of the month. Traders could take this opportunity to enter for long position targeting $21.350 and later $25-26 resistance area.
The Recent close of the weekly chart is bearish for silver. The $18.50 level proves itself as a long-term resistance and will not give way for the bull easily. This week, the price of silver might consolidate and move downward breaking two bearish candlestick patterns. The downside target of breakout is $16.80 – $17.10 where traders could look to enter for a long term position.
There is a possibility the bull might disregard the bearish pattern and boost the price higher than $18.50.
Silver prices closed lower on the daily chart, but at an acceptable level. The price needs to maintain its position above $17.75 to avoid more sell-off. Otherwise, it will slide further toward the blue trendline before finding any support.
Bullish: A long position near $17.75 and blue trendline.
Bearish: A break below weekly candlestick might trigger more sell-off toward $16.80 – $17.10 but low probability. – FXDaily
Please check back for new articles and updates at Commoditytrademantra.com
For More details on Trade & High Accuracy Trading Tips and ideas - Subscribe to our Trade Advisory Plans. : Moneyline