Silver long-term technical analysis
Silver could not escape the bearish trend and continue its lower close in April. This month, the price extend the bearish pressure and manage to move below April low. No reason to switch to the bullish side yet and traders could expect further weakness in Silver.
But, we might have switched in the fundamental view as U.S-China trade war intensify. Both countries could not reach agreement on the latest trade talk and the U.S already implemented an increase of tariff to China’s goods. At the current time, traders and investors are waiting for the retaliation from China.
Precious metal usually becomes the object of investment when uncertainties shoot up and the time is now. Silver could gain under the current fundamental situation.
Click here to see previous Silver long-term technical analysis April 2019
No bullish reaction yet from the market as silver closed lower for the third month. However, we could see the rate of fall slowed and it is possible the price ready for a bullish reversal. On the chart, if the price continues lower then it will target $14.00 support level. On the path upside, $16.00 is the resistance to watch.
The bearish pressure on silver continues and manage to push the price below $14.90. However, we could see the little bullish reaction in the price and it is possible a reversal is in progress. Current weekly close might give us a clue on silver next movement.
Silver move between two trendlines and no breakout yet. The price stick near the top trendline and $14.80 – $14.90 resistance. Which will happen? rejection or breakout?
At the current time, the outlook continues bearish as long as the price stays below $14.80 – $14.90.
Bullish: Traders could use the level near $14.90 as the reference level to take long positions. On the daily chart, we need a breakout above the level first before the trend could turn bullish.
Bearish: Short-term short positions could be taken near the trendline on the daily chart.