Silver continues to test an important level

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April 1, 2019 1:41pm NYSE:SLV

long and stacked silver bars

From Christopher Lewis: Silver markets went back and forth during the trading session on Monday, as we continue to test the $15 level for major support. At this point, the market should show plenty of importance to the $15 level as it is a large, round, psychologically important figure. However, given enough time it’s likely that we will find that area important enough to bring in a lot of value hunting. If it does not, that would be a very negative sign indeed. That could have market participants heading for the exits, sending silver down to the $14.50 level. That could be a rather violent action.


SILVER Video 02.04.19

However, it’s very likely that we will see an attempt to reach towards the $15.25 level, and then possibly the $15.50 level after that. The 50 day EMA is sitting around the $15.50 level, so I think it will be a bit of a natural magnet for price. Looking at this chart, I suspect we are going to have a couple of rough days ahead of us but given enough time I fully do anticipate that we will eventually bounce a bit. All things being equal, silver will move right along with the value of the US dollar, with its typical negative correlation. If the US dollar strengthens, that puts heavy weight around the neck of the silver market, but if it falls over, and it is in that area that should start to see significant resistance, we could see silver strengthen again. All things being equal I am anticipating more of a range bound market with an upward proclivity.


The iShares Silver Trust (SLV) was trading at $14.16 per share on Monday afternoon, down $0.02 (-0.14%). Year-to-date, SLV has declined -11.44%, versus a 7.34% 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 FX Empire.


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