The silver market is looking a little weak at present, and if you have been following my articles on silver you would have seen why. At present silver has hit a strong area for support in the markets, the question now is it possible to go any lower or any higher.
At present indicators are giving of mixed signals in the markets. When we look the RSI and Stoch we can see that momentum is incredibly bearish according to the signals, and silver is veryskittisharound the oversold mark, and is currently pulling back when it feels too much pressure from the markets.
The current channel is strong, and if you’re looking to make use of bullish movements, then you need to see if silver and push of the current trend line and through the channel at present. Resistance will likely be strong, but silver does move persistently at times.
If you’re a bear then you will have to wait and see if it can push down and through the current support zone. I don’t think this is very likely, and the downward side potential is limited given the long term support line in play: denoted by the red line below the support zone. A touch at 19.00 might be possible, but long term that is all that is most likely left for the bears to swipe at.
Overall, silver still has potential and is one of the metals to watch at present. It’s not as volatile as gold, but it generally follows the technical a bit better, and movements are less extreme meaning that risk practices are easier to maintain.