Silver markets continue to show strength

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February 19, 2019 4:34pm NYSE:SLV

long and stacked silver bars

From Christopher Lewis: Silver markets continue to show signs of strength overall, reaching towards the $15.80 level. I believe that there is a massive barrier at the $16 level, an area that we are trying to get back to. There is a minor resistance between now and then, but we continue to make “higher lows”, which of course is a very essence of an uptrend. I believe that silver does lagging gold typically, and it most certainly is right now as gold is breaking above a beginning resistance level at the same time silver is still trying to build up its momentum.

Pay attention to the greenback, because if it continues to soften overall we should see the precious metals game, Silver of course included. If we can make a fresh, new high, the market can continue to reach towards the $17 level which is my longer-term target. The alternate scenario of course is that if we break down below the $15.50 level, it would be breaking a trend line and we could have a move back towards the $15.25 level, possibly even the $15.00 level in order to “reset” the entire move, and perhaps try to build a bit of momentum.

If we were to break down below the $15.00 level, that could unwind this market down to the $14.00 level which would be a return to the bottom of the overall consolidation. Longer-term though, I believe that the market does favor the upside so I am bullish of silver and believe that adding on fresh highs should continue to be the way forward.

The iShares Silver Trust (SLV) was trading at $15.02 per share on Tuesday afternoon, up $0.20 (+1.35%). Year-to-date, SLV has declined -6.07%, versus a 4.55% rise in the benchmark S&P 500 index during the same period.

SLV currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #9 of 35 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Yahoo Finance.

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