Silver prices_ long-term support zone in focus, gold teetering exchange rate usd to yen
On Wednesday, when we last discussed silver prices, we were sticking with our base-line scenario of seeing the trend-line off the July spike high and August low continue to converge before soon seeing a material breakout.
To end last week, silver was looking solid until it had a sharp intra-day reversal, which carried over into Monday. Decimal to binary encoder Selling pressure pushed silver below the lower trend-line on a daily closing basis, which is forcing us to adjust.
We noted on Friday that silver could break below the lower trend-line and all wouldn’t be lost on the bullish case, but we would need to make an adjustment to our base-line scenario.
The break helps clear a path for lower prices in the short-run, but overall silver continues to sit within a major support zone dating back to bottoms created in 2013/14, 2015 peak,
and the summer low.
We will respect support as long as it holds. Euro pound sterling exchange rate On a break there is one more last line of defense for intermediate to long-term longs at the trend-line rising up from December. Bloomberg stock futures cnn But for short-term traders the path lower would be cleared for trades from the short-side of the tape.
One alternate scenario which could still make for a clean set-up, but will require time to develop, is a descending wedge. Define futures market The top-side trend-line would remain while a flat bottom forms around 18.50. Usd to php exchange rate today This is only a tentative scenario at this time, but one worth keeping in mind should it unfold.
Keeping an eye on gold;the metal is teetering around the important 1300 level after dipping below key trend-line support from December. Usd chart Gold needs to soon turn up if momentum isn’t to kick in to the downside. Usd to euro chart A break of both the trend-line and 1300 level could spell significant trouble. Gold price history chart If this is the case, then silver will likely find it difficult to hang onto the 2013 – present support zone, and could quickly trade down to the December trend-line.
Precious metals are in a precarious position at the moment, but a quick turnaround from current levels could quell the notion we see prices move much lower from here.
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