With a little help from the Fed announcement on Wednesday, May silver futures posted an impressive outside up day with the best close in three weeks. There are however still two pivotal resistance levels that need to be taken out before I get too excited about the recovery in silver. The first level in May contract is at $15.55 and secondly the 200-DMA is at $15.655. Once the market is able to get a close above these levels the bulls in the market will get more confident about buying silver futures. Both of these levels have been touched at the time this article is being written. Any reluctance to follow through with new buying will turn the market lower. That’s why I emphasize that these are pivotal levels. A dovish Fed is not enough on its own to completely reverse the trend. The market needs some technical follow through.
While I do remain long-term bullish on silver and believe that silver is under-valued at these price levels, I have to respect the trend is still sideways and therefore can still go either direction…up or down from here.
Silver May ’19 Daily Chart