Is Silver in a Bear Trap?Posted 05/04/2018 9:53AM CT |
July silver is trading at 16.425, down about two cents on the day. The technical outlook for silver is that it is up at least from the monthly low made May 1, 2018, of 16.07, but overall it’s trending down. If price breaches the 16.20 level again, per close bases, this could result in a selloff to the 16.00 psychological level. If pressed below 16.00, you might see a low of 15.80 or even lower. So all that said, a trade over 16.70 is needed to put near-term lows in.
As I have stated in the previous report, “the technical outlook for the US dollar index is improving with more US rate hikes on the horizon. Even with the strength of the US dollar index, the silver chart looks more bullish with a weekly structure leaving 16.05 near-term bottom. The only negative for silver is the size of longs in this market; therefore, any profit taking type of sustain pullback should be an opportunity to buy rather than sell.”
Silver Weekly Chart