Silver Prices Approaching Important July Trend-line
- Silver prices spike in far less dramatic fashion than other markets following the Trump victory
- Neared July trend-line, a push into that line would likely prove problematic, at least at first
- As long as the recaptured January trend-line holds, downtrend from July won’t be able to reassert itself
One of the less dramatic moves following the surprising US presidential victory by Donald Trump was in silver, while gold reacted as violently as any other market. Gold spiked well over $60, touching off on the 2011 downtrend line before closing near unchanged. Silver spiked but the move wasn’t much larger than what we have seen before on events of far less significance. What does it mean? Not much, other than the swing higher and back lower was far less chart ‘wrecking’.
Yesterday’s move carried silver up near the July trend-line. Today we are seeing silver push back towards the Wednesday high and that important t-line once again. The metal has still been unable to close above swing lows created in September, but even if it does that July trend-line is the real focus and likely to prove problematic. At least on its first attempt to break on through.
If silver shows a solid reaction off the trend-line, a short trade may be warranted given its significance. A close above the trend-line could prove to be quite important and ultimately mean we will see a strong move to levels over 20.
The recaptured January trend-line will continue to be viewed as support for as long as it holds. A break below would be required to consider the possibility of seeing the July to current downtrend reassert itself.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.