Silver long-term technical analysis
Silver closed higher in January and near the resistance $16.00. It is expected to continue the upward movement in February, however, the market thinks $16.00 is the level for profit-taking and the neutral level before a major event in March.
This month, Brexit issue, U.S-China trade war negotiation and Central banks action on interest-rate should influence the sentiment heavily. Recently, UK MP rejected a deal proposed by Theresa May for the second time. It means the country might choose between “No deal” or “Delay Brexit” at the end of the month. Under the current situation, it is possible for silver to experience buying as the market flight to safe assets.
Click here to see previous Silver long-term technical analysis February 2019
In February, the price of silver attempted to break above resistance $16.00 but ended with rejection from the resistance level. The price closed down and currently, the bear followed through by pushing the price lower. However, the bearish momentum losing steam and silver back to previous month low.
If the bull could close the month on the positive side and near $16.00 then it is possible for silver to continue higher next month.
The bearish movement of silver, deliver the price down to as low as $14.93 before turning up. Currently, silver bull follow-through the bounce by moving above the previous week high. If there is no change in the sentiment then silver expected to continue its upward movement toward $16.00
We could see a bounce from the bottom of the channel and the level near $14.90. The upward movement brings silver near the top of the red channel. Will the price rejected and start a new bearish leg?
Bullish: Long positions need to wait for a correction in silver prices. Traders could use the level near $14.90 as the reference level to take long positions.
Bearish: Nearest short-term resistance present on the daily chart (The top of the red channel). Short positions near the top of the channel could be taken with short-term to medium-term outlook. If the price continues moving upward then $16.00 is the level to watch.