Silver Trend Still IntactPosted 02/21/2019 9:26AM CT |
May silver futures ran into some significant resistance yesterday at $16.29, the previous swing high from January 31st. I personally believe it was more of a “Fed induced” correction. The market expectation from the Fed minutes yesterday was for a more dovish bias.
The silver market has been trending higher for the past three months. Corrective dips should be well supported. A critical level for me is at $15.75 in the May contract. A close below that level is a short-term trend changer. However, I see something very bullish in the daily chart. It’s a “Golden Cross”! The 50 DMA has just crossed above the 200 DMA. That’s a very compelling bullish indicator.
Outside markets are also supportive. Dollar weakness should be keeping silver from sliding into a bear trend and copper is breaking out to the upside now. Also, the gold to silver ratio is 83 to one. Silver has a long way to go in my opinion.
If you would like to learn more about metal futures, please check out our free Fundamental of Metals Futures Guide.
Silver May ’19 Daily Chart