Silver markets fell a bit during the trading session on Thursday, testing the uptrend line that has been so crucial for this market. At this point, it should also be noted that the 50 day EMA sits just above, and that of course can cause a certain amount of resistance. It certainly looks as if silver is trying to decide where it wants to go for the longer-term move, so it will be interesting to see how this plays out. All things being equal though, we are still technically in an uptrend so that is something worth paying attention to. With that in mind, a break down below the hammer that formed on Wednesday would of course be a very negative turn of events. After that, then you have to start to worry about the $17.00 level which should be supportive.
SILVER Video 08.11.19
A breakdown below that level opens up the door to the 200 day EMA, and at that point obviously the entire uptrend is going to be threatened. While central banks around the world continue to ease monetary policy, it does give a bit of a boost to precious metals but the Federal Reserve seems to be on the sidelines so it may not give as much of a boost towards this market anymore. With that being the case, then we need to pay attention to whether or not we are getting ready to break down. It is still technically in an uptrend and I do like silver longer-term, but we may see a bit more weakness in this next couple of sessions.
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This article was originally posted on FX Empire
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