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.
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Silver May ’19 Daily Chart