Silver still looking weak
Silver, in line with the rest of the precious metals complex, has been struggling in recent weeks and months, with the resilient risk tone (which is now being tested by trade tensions) and a strong USD combing to keep price anchored in and around the $14 mark. As we have seen with Gold, safe haven buyers are still reluctant to pull the trigger here as the greenback continues to offer yield and liquidity and ultimately trumps metals as a store of value.
As an industrial metal, silver also commands significant demand (including medicine, semi-conductors, water purification amongst others), so it is fair to include factors influencing price such as copper, which as we know has been under pressure in recent times due to the slowdown in China. As such, one could say it has suffered a double whammy in the current climate, though prices have been levelling off of late.
On the daily chart it is still making lower highs and lower lows. The two trendlines are now converging to make an apex and it seems the bottom is still vulnerable. On the downside support level hang at $14.29/oz and $13.86/oz, the latter was used as an important base last year and subsequently, price moved all the way up to $16.20/oz. If we do manage to break higher then just under $15/oz will be a tough nut to crack. Between Oct-Dec 2018 price testest that area around 4 times before smashing through it and if time teaches us anything old levels become new ones!...