Silver failed to capitalise on yesterday’s dollar strength and for price momentum to pick up a break to the December low of $13.61 is needed. Until this happens, silver is dead in the water.
A break to the December low of $13.61 will probably encourage more sellers to step in, as a break to this level opens the door for a decline to the August 19 low of $13.48. A bearish breakout is also in line with the idea that the USD will gain in 2016 as the Fed hikes rates.
If a break does not occur, then silver prices may reach $14.25 as investors range trade the $14.40 to $13.61 range. However, as long as price is capped at $14.40, I will remain bearish in line with the longer term trend.
Silver Prices | FXCM: XAG/USD
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
Leave A Comment