May silver is trading $18.240 up about 5 cents on the day. Before, I discussed the potential for momentum to move to the upside in the $18.500 range. Per my previous article, upside target seem fulfilled. For now, unless we get a blowout type of price action i.e. rally above $18.50, trades looks to go from sideways to a lower type of price action.
In world news, Chinese Xi is visiting the US today, and we will see what type of confrontation on trade and North Korean issues will occur between Trump and Xi. The Chinese may make concessions to counter currency manipulation charges. Of course, in the end, would any agreement create an inflation environment in the US and Chinese futures? What about infrastructure initiatives in both countries?
For now at least, silver is taking a bit of a breather. Weakness in silver should be seen as an opportunity to be bought rather than sold. A brief sell-off yesterday after a strong ADP report had some trades tilting bearish on silver.
The technical picture has May silver futures looking sideways to lower price action near term. Low to mid $17.00 range will probably provide some opportunities. Of course, a close above 18.50 will ignite momentum price action.