Front-month May silver is trading at 15.330, up 16 cents on the day. Silver is tracking equities this morning to the upside. Per the chart below, it looks as though silver is looking to put bottom. With dollar trading lower this morning, metals are getting the additional lift needed to continue to hold positive territory. Silver needs to trade and close above 15.45 for the near-term lows to be in. On the charts, silver is working inside day from yesterday’s sell-offs. In other words, silver has just as good chance of taking out yesterday’s highs and lows. Given the long-term chart attached, it looks like the bulls will continue to hold advantages. Again, trade deal between U.S. and China will likely foster positive global growth and be supportive for silver since its tracking equities at this time.
Silver/Gold ration is back to 85.10 from recent highs of 85.56, giving silver a bit of an edge over gold. I do not expect real near-term weakness; however, a close below 15.00 most likely signal near term high, otherwise we are just looking at a consolidation for more potential upside.
Silver Weekly Chart
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