The Wall Street Examiner
APR 12, 2018
In addition to the vaunted gold/silver ratio topping out over 80, additional technical and US dollar indicators point to near-term silver price upside.
Since mid-January, the DXY has been trading in a limited range between 88.5 and 90.5. After four attempts, the dollar has so far remained unable to break out through upper resistance.
In my view, we could continue in this holding pattern for some time. In fact, the dollar could eventually rally, but I’d still expect any strength to be limited in both time and intensity. For now, the RSI and MACD are doing little to provide directional clues.
The path of least resistance could well remain lower, and that of course should be good for silver.
If you look at the price of silver itself, we see the large narrowing wedge continue to narrow.
As this wedge progresses in time, silver becomes more likely to break out, because the lines get closer.
We see a bias, albeit small, in the RSI and MACD to trend upward, helping to confirm silver’s direction upward.