Silver Price Forecast – Silver markets give back gains
Silver markets broke to the upside during the trading session on Wednesday, breaking the top of the hammer from the Tuesday session, a typical buying scenario. However, we have given back quite a bit of the gains and formed a less than impressive candlestick. Ultimately, I think that the market continues to go back and forth in this little bit of area, perhaps trying to build up a bit of confidence. After all, we had seen a lot of bullish pressure until about two weeks ago when we pulled back. We have pulled back to the 61.8% Fibonacci retracement level, at roughly $15.22 just below.
SILVER Video 24.01.19
That being said, the day on Wednesday wasn’t that great. However, until we break down below the hammer from the Tuesday session, I still believe that the uptrend is intact. If we were to break down below the hammer from Tuesday, then the market could go down to the $15 level after that. The alternate scenario of course is that we break above the $15.50 level, and then continue to go higher, perhaps reaching towards the $16 level after that. Obviously, the US dollar will be greatly influential on where we go next and silver, so keep an eye on what goes on in the Forex arena. A great proxy for this chart is the EUR/USD pair, which looks as if it is trying to find support at a potential uptrend line, essentially the same thing we are looking at here.
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