Silver markets have dipped on Tuesday, but then turned around to form a hammer like candlestick midday. It looks as if the $18 level will be busted through.
Silver markets have initially pulled back during the trading session on Tuesday but have found a little bit of footing as the market may have gotten itself a little oversold in the short term. That being said, we are still very much in an uptrend so it does make sense that there would be a little bit of “value hunting” down at these low levels.
If that is going to be the case, then by all means I think it is probably likely that we will see this market continue to try to grind much higher. I think the key word here of course is going to be “grind”, as the market is at somewhat high levels. Remember, it has not been that long since we see the $19 level offer significant resistance.
That being said, it certainly looks as if we are going to try to continue to go to the upside and if the Federal Reserve is very dovish with that statement on Wednesday, that might be the catalyst to send this market much higher. It will bring in the “hard assets/precious metals trade”, which of course benefits silver as the US dollar gets clobbered.
However, if the Federal Reserve says something that even remotely hawkish, that will crush silver. I doubt that is the case though, as clearly the Federal Reserve is aware of the fact that the sole reason for any type of recovery in asset prices lately has been due to their policies. With that in mind, I think it is only a matter of time before silver finds buyers and breaks through the $19 level.
The $17 level underneath it looks to be the short term “floor.”