Silver Futures Look Vulnerable to a SetbackPosted 04/05/2019 7:36AM CT |
Silver futures seemed to be basing a bottom, however the chart is beginning to slant negative again. Strength in the U.S. dollar Index is providing just enough pressure with silver testing a pivotal support level at $15.00. It now leaves $14.75 as a reasonable target on the way down. Outside markets, other than the almighty dollar, need to be watched. The equity markets are now within reach of all-time highs. That does not support the price of silver. While I do recognize that the path of least resistance for silver is down, I also believe that the “bullishness” of the U.S. dollar and the strength in U.S. equities markets can quickly reverse as both run into some headwind resistance levels up here. If the on-again-off-again China negotiations suddenly fall apart or any other unforeseen event reverses the equity markets, then silver will also reverse. It may just be a level on the chart that turns any of these markets around.
Silver May ’19 Daily Chart