Buyers are in Control for the Silver Markets - 23 June 2016

Silver markets have been rather sideways over the last couple of weeks, so it makes sense that perhaps the market should remain within the consolidation that we’ve seen for some time. That being the case, the market could very well bounce from here and the fact that we have formed a hammer during the course of the session during the day as it appears that the $17 level below continues to be supportive, and with that being the case I believe that the buyers will return. A break above the top of the hammer should send this market looking for the $17.75 level, and then possibly the $18 level above there. Ultimately, I do think that the buyers will win out due to the fact that we have quite a bit of uncertainty when it comes interest-rate hikes coming out of central banks around the world, especially the Federal Reserve.

Hard assets

I think that a lot of people will continue to prefer hard assets at this point in time as the US dollar of course is going to suffer as we have no real signs of the Federal Reserve be able to raise interest rates. This of course works against the value the US dollar against precious metals, as they give a little bit of refuge against falling currency and of course concerns when it comes to the European Union, the United Kingdom, and economic activity. With this, it’s probably only a matter of time before people simply flood into the precious metals markets as we are afraid of so many moving pieces right now that the market is going to grasp at straws when it comes to some sense of safety.

The $17 level below been broken to the downside would be negative, and as a result I think at that point in time the market would more than likely try to selloff down to the $16 level. Ultimately though, I still believe that the buyers are in control.

Silver

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.