Gold Trading Higher, But Don’t Forget Silver

Gold Trading Higher, But Don’t Forget Silver by Joe Perry via Investing

With the addition of more Chinese technologies companies to the blacklist yesterday evening, gold is trading higher today, currently up .60%. But don’t forget about silver, which has been trading higher as well since June, currently up almost 1.5%. However, the white metal has a lot of work to do if it is going to continue to move higher, as there is a great deal of resistance it needs to get through first.

Silver had been in an upward sloping channel since the beginning of June and peaked in early September. Since September 4th, silver has been pulling back in a channel formation and has bounced off the 50% Fibonacci retracement level from the May 27th low to the September 4th high. Although there is still time left in the day, if silver were to close 17.51, price would put in a bullish engulfing candlestick on a daily timeframe, which is a 2-candlestick bullish pattern.

Silver/US Dollar

Silver/US dollar

Silver/US dollar

Source: Tradingview, FOREX.com

On a 240-minute time-frame, silver is running into the 38.2% retracement from the September 4th high to the October 1st low at 17.79, which also acts as horizontal resistance. Above there, silver needs aconvincing break through the downward sloping trending near 18.03. In addition, just higher is the 50% Fibonacci retracement level from the previously mentioned time period, at 18.27. That level too acts as horizontal resistance from the spike low on September 24th. Support comes in at the previous lows of 16.90. The next level of support is the spike lows and horizontal support near 16.50.

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.