Silver Will Likely Ride Gold's Coattails in 2019
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(Kitco News) - The Comex silver futures market did not fare well in 2018--losing well over $2.00 an ounce. The good news is that silver prices in 2018 dropped down to strong longer-term technical support levels and then saw modest rebounds from those important chart points. In just the past few weeks silver prices have rebounded almost $1.00 from their November lows, which were nearly three-year lows.
The daily bar chart for March Comex silver futures shows prices are in an uptrend from the November low, but prices will have to push above near-term chart resistance at the October high of $15.055 to give the bulls enough technical power to continue the near-term price uptrend, as seen on the daily chart.
The weekly continuation chart for nearby Comex silver futures shows prices remain in a longer-term downtrend. However, see how prices have rebounded from longer-term support at the 2016 low. From a weekly chart technical perspective, nearby silver futures prices will have to push above longer-term resistance at $16.00 to suggest an extended uptrend will occur.
The long-term monthly continuation chart for nearby silver futures also shows a downtrend in place, but again note how prices dropped to strong chart support at the 2016 low and then rebounded. Essentially, the overall technical posture for the silver market can be viewed by the bulls and bears as the glass being half-full or half-empty. Bears can correctly argue that longer-term price downtrends remain in place. Bulls can counter with the fact that chart price history shows markets tend to gravitate toward historical highs and lows (as seen on the weekly and monthly charts), and then when they are hit prices then reverse the trend.
What may be most important for the silver market in 2019 is how its big brother, gold, performs. The gold market is presently in a bullish near-term technical posture and if the yellow metal continues to trend up in the coming weeks and months, silver will very likely follow suit.