 Good afternoon and welcome to the chart of the week video with me David Madden Today's date is Wednesday the 19th of February 2020 and the time has just gone 1225 GMT and this week's chart of the week is silver And if you take a look at the price action in the last few months, we can see since mid-December onwards It's been a fairly decent upward trend We had a surge into the middle or early ish January When the US around tensions were quite high market cruels and it's now seems to be pushing higher yet again In fact today we fit a level of Last seen in around early January itself But we're still well off the highs that were achieved in early January on the back of those political political tensions If you take a look at the MACD indicator the MacDee Instagram We can see that there's been a swing to positive momentum and momentum and the positive momentum Is actually increasing so therefore we can see it can be more more confident at the end this upward trend is going to continue The underlying market is moving higher Positive momentum is increasing. So it's fair to say for the time being the control is with the bulls So if we do press and hire from here, we could be looking at targeting in around 18 spot 50 And the movie on that could take us toward the highs of early January in around 18 spot 85 And if you go beyond that we could then end towards 19 spot 0 I thought it's only really and then if you will be on that We could be looking at targeting the highs of early September in around 19 spot 65 Now there are the potential price areas of resistance Obviously looking towards the upside if we do see a pullback in in the similar markets We could see fresh buyers out of the fall because in the last few weeks and kind of wider months Bina the dip has been a popular strategy with some traders So if we do look to drift lower from here support could be found from this blue line here the fifth of the moving average And that comes into play in around 17 spot 70 We can see in a few occasions that recently that metric acted as support Also this area acted as support as well the 100 a moving average and that comes in the play a bit below that at 17 spot 5 If metrics have been important in the past it makes them more likely they'll be important in the future although there are no guarantees The point of which you might get a bee you might become a bit concerned that the upper trend has come to an end is if you take Out this level here the lows of late January in around 17 spot 33 If you take take out that level that could be a sign you know what they can more recent bullish move has come to an end and It could send us back down towards this zone here in around 17 spot 2 or perhaps even actually 17 spot 0 0 itself Now if you are gonna be trading silver I would recommend keeping an eye on what's going on in gold Because one of the tenants of Dow theory is that the averages must confirm each other And what that essentially means is that markets that are fairly similar or have high correlation that tend to move in the same direction If silver is pushing higher you might have see something happen You'd like to see a similar move being replicated in the gold market Therefore you can be more confident that both markets are going to continue on that pace Conversely if both if silver with moving lower you'd like to see gold moving lower But it's when the markets are in the opposite direction diverging that's when you can be a bit less sure of that of that Of that of that particular move So I just mentioned about how a silver is pushing higher we can see here on the gold market That's certainly pushing higher in fact Gold isn't too far away from the highs that were achieved in early January on the back of the US around tensions And if you do press and hire from here, we're not too far away because we're currently on gold around 1608 1609 the highs were in around in January for highs in around 1611 I would suggest if you do a break beyond the highs of January That could be a very bullish indicator Not only for gold, but also for silver because if you take out the highs of January on gold They'll then put us back to levels last seen in early 2013 So it is a word to word you while keeping an eye on other markets Even if you're just focused on silver itself Lastly, I would point out that today the Fed reserve minutes would be released from the from the meeting in January Recapt on hold the details we published at 1900 hours GMT to be honest It's not it's not overly likely to to to be to inject much volatility into the financial markets, but it could Traditionally there's been a in British relationship between the strength of US dollar and the strength and the strength of gold and silver There hasn't been so much the case recently the high for seeing gold and the high for seeing the silver silver has Has has has occurred in the last few sessions despite the fact the US dollar are strong So that all correlation for the time being or inverse correlation may not may not be applicable But it is worth your while keeping an eye on what the Fed said nonetheless Thank you for listening. Have a good trading week and good luck