Silver Riding the Palladium WavePosted 01/18/2019 9:22AM CT |
Front-month March silver is trading 15.410 down 11.5 cents on the day. Silver is closing down on the week, but the chart below suggests an upside breakout is likely once the market works itself out through this “coil type” of price actions. The prenominal strength in the palladium market had a spillover effect in other metals. The Brexit implementation has been very problematic, and I’m not sure it will lift silver the coming weeks. The trend is clear, even with the recent pullback, that silver will likely return to the recent highs. Trade most likely retest near 16.00 in my view.
Again, silver is in bull trend and I’m not ready to throw in the towel on this recent pullback. Technical indicators for the bulls will improve on a break above 15.900, really unless silver trades below 14.600, the bulls will continue to hold a decent advantage.
The Gold/Silver ratio is sitting at 83.26 from a recent high of 86.16 suggesting that “bid” for silver continues to improve relative to Gold. The path to least resistance is to the upside for now, any pullback might be seen as buying rather than selling opportunity.
Silver Mar ’19 Daily Chart